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SYDNEY, AUSTRALIA, 14 MAY 26
Australian CEOs say the workforce impact of AI will be led by reskilling and redesigning roles rather than widespread hiring cuts, according to EY-Parthenon’s latest CEO Outlook Survey.
44 per cent of Australian CEOs rank large-scale reskilling and upskilling as a first or second workforce priority over the next three years and a further 41 per cent prioritise redesigning roles to combine human and AI capabilities. By comparison, only 20 per cent place reducing hiring in certain roles among their top priorities.
EY-Parthenon Leader for Oceania, Shannon Cotter said the survey of 60 Australian business leaders challenges assumptions that AI adoption will automatically translate into widespread job cuts.
“Most Australian CEOs are not treating AI as a workforce cost-out. Their focus is building capability and redesigning work so staff can use AI effectively to achieve business objectives rather than making job cuts the default response,” Ms Cotter said.
“30 per cent of CEOs rank increasing hiring for AI, data and digital roles among their top priorities, which shows AI is opening up new opportunities as organisations build specialist capability to scale,” Ms Cotter said.
The survey also found AI is already delivering measurable enterprise impact, with core operations and productivity leading the way. More than half of Australian CEOs surveyed (53 per cent) say this is where AI is making the biggest difference today.
CEOs also point to impact on strategy and decision-making (43 per cent), product or service innovation (43 per cent) and customer service and experience (40 per cent). A further 33 per cent cite supply chain and procurement, and 32 per cent cite sales and marketing. Notably, none of the Australian CEOs surveyed said they were yet to see measurable results from AI.
CEOs are backing the shift to AI with capital, with 80 per cent of leaders saying their organisation’s planned AI investment for 2026 will increase compared with 2025, while the remaining 20 per cent expect it to stay the same.
“CEOs are increasing AI investment and spreading capital across multiple objectives. They are allocating 28 per cent of AI investment to quality uplift, 25 per cent to reshaping the cost base, 24 per cent to incremental cost-out and 23 per cent to using AI as a commercial engine to redefine the business model,” Ms Cotter said.
Ms Cotter said the results show scaling AI is a leadership and culture challenge as much as a technology one.
“When CEOs are asked about the main talent constraint on generating value from AI, 32 per cent cite maintaining an entrepreneurial culture during AI-driven change, followed by cultural resistance to change at 18 per cent,” she said.
“CEOs are investing more, and they want a return. That means redesigning work, supporting people through change and measuring outcomes, not just running pilots.”
As organisations scale AI, trust and safety are front of mind and regulatory uncertainty is becoming a bigger issue.
Only 13 per cent of Australian CEOs surveyed say current AI regulatory frameworks provide clear guidance that supports strategy and innovation. In contrast, 41 per cent say the landscape offers some clarity but remains fragmented or is still evolving, while 33 per cent say it is increasing compliance requirements and operational complexity.
“Clearer rules help businesses invest with confidence and deploy AI responsibly. When guidance is fragmented, compliance costs rise and decision-making slows,” Ms Cotter said.
“CEOs want regulation to evolve with AI, with flexible frameworks anchored in real-world use and ongoing engagement with industry to ensure policy works in practice.”
“Leaders can keep moving by strengthening governance and setting clear accountability so innovation can continue as privacy, risk and compliance expectations progress.
The findings are based on a survey of 60 Australian CEOs conducted in March and April 2026.
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On behalf of the global EY organization, FT Longitude, the specialist research and content marketing division of the Financial Times Group, conducted an anonymous online survey of 1,200 CEOs from large companies around the world in March and April 2026. The survey aims to provide valuable insights on the main trends and developments impacting the world’s leading companies, as well as business leaders’ expectations for future growth and long-term value creation. Respondents represented 21 countries (Brazil, Canada, Mexico, the United States, Belgium, Luxembourg, the Netherlands, France, Germany, Italy, Denmark, Finland, Norway, Sweden, the United Kingdom, Australia, China, India, Japan, Singapore and South Korea) and five industries (consumer and health; financial services; industrials and energy; infrastructure; and technology, media and telecoms). Surveyed companies’ annual global revenues were as follows: less than US$500 million (20%), US$500 million to US$999.9 million (20%), US$1 billion to US$4.9 billion (30%) and greater than US$5 billion (30%).
This news release has been issued by Ernst & Young Australia, a member firm of Ernst & Young Global Limited. Liability limited by a scheme approved under Professional Standards Legislation.
Hamish Goodall - Corporate Affairs Manager, Oceania
Phone: 0467 346 364
Email: hamish.goodall@au.ey.com
