Only 24% of surveyed Australian businesses feel “very prepared” to implement AI into an array of functions – a lack of confidence topped only by Hong Kong in the Asia-Pacific region.

Risk advisory group Kroll’s latest Global Business Sentiment Survey found cybersecurity threats and AI integration are considered the most significant challenges facing organisations over the next year, each nominated by 48% of respondents.

Just 28% of Australian respondents feel very prepared to face cybersecurity challenges, while 39% have AI policies or a governing body in place.  

Australia also has the lowest confidence in the region when it comes to addressing the impact of global privacy laws.  

Kroll investigations diligence and compliance MD Maurice Burke says Australian businesses are being tested by “a perfect storm of global uncertainly, including growing cyber threats and the rapid evolution of AI. Every day there are significant threats to the security of data that are not being effectively managed.”

Detection systems must improve, he says. Internal processes must be robust and clear, and “intelligence-driven risk assessments are critical”.  

More than 76% of Australian companies reported increased cyber threats last year, and 56% feel no better prepared than they were then.

Just 24% of Australian business leaders feel very prepared to face debt service and financial risk challenges.

One-fifth of respondents in Australia selected financial crime and fraud as a significant challenge.

Kroll co-head of Asia-Pacific investigations, diligence and compliance Cem Ozturk says “weaponising of tariffs” has many companies concerned about their valuations, supply chain disruptions, locational strategies, cost optimisation, compliance, and investment or divestment considerations.  

“The outlook for Australian trade will ultimately depend on the level of tariffs, whether changing trade patterns induce supply disruptions, movements in the Australian dollar exchange rate, and the effect of trade policy uncertainty on global activity,” he said.