KPMG’s 8th edition of the Keeping us up at night survey captures the perspectives of over 270 Australian business leaders, to reveal the biggest challenges and risks on their minds for the short and medium terms.
AI related issues emerged as the number one challenge facing Australian business leaders in 2026 and for the years ahead. Digital transformation and optimisation came in second, with cyber security risks remaining in third position. Survey results indicated Inflation was less of a priority this year, while uncertainty around inflationary cost controls, talent sourcing and productivity dropped down the list.
Larger corporates with over $500 million in revenue and mid-market respondents consistently ranked AI and technology challenges and concerns as their top concerns. However, in other categories, the results indicated a more positive outlook for the mid-market.
Top challenges for Australian business leaders in 2026
Key concerns for 2026: what business leaders are saying
KPMG has identified three key areas from the 2026 survey findings.
KPMG's insights into 2026
Australian businesses are more aware than ever of the challenges and opportunities of new technologies, both in the short term and beyond. It is significant that leaders ranked AI-related issues as their top concern for 2026 and for the next 3-5 years as well.
KPMG Australia's CEO Andrew Yates says the survey has revealed "there is clear recognition that AI is here for the long haul and businesses that get ahead of the game and embed it into their overall strategy now will be well ahead of those that don’t.”
More than a third of leaders identified that driving productivity is a key challenge for the year ahead. KPMG Australia's Chief Economist Dr Brendan Rynne has observed that "we’ve been witnessing sliding productivity for several years now and seeing the weight put on this challenge by our respondents only reinforces the legitimacy of this issue in 2026.”
Stalling consumer confidence has become the third lowest issue concerning leaders for 2026, the largest drop in the list of challenges. Concerns around the need for businesses to chase new markets and be innovative to capture growth has also fallen by around a third compared to 2025.
The survey indicates that business leaders are much more optimistic about capturing opportunities from a rising market, and less concerned about supply chains, geopolitical tensions and inflation.
About the survey
KPMG Australia surveyed respondents between 23 October and 21 November 2025. We received a total of 274 valid responses. Respondents were a mix of C-Suite executives and board members from a range of industries and specialisations across the private and public sector.
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