Australian CEOs’ return to office expectations have “backflipped”, a KPMG survey finds.

Just 22% of those polled expect corporate employees in the office full-time in the next three years, down from 82% a year ago and representing a “U-turn” on the matter, the consulting group says.

“The numbers confirm what we have long suspected: a return to a fully back in the office workforce in Australia is unlikely,” KPMG Australia CEO Andrew Yates said. “The majority of CEOs have said they’ve found three days a week in the office to be the sweet spot.”

No one surveyed thinks roles will be fully remote, with half forecasting three days a week in the office, 18% four days and 8% two days.

The 11th annual KPMG CEO Outlook surveyed 1350 insurance and other industry CEOs at companies with annual revenues above $US500 million ($760.4 million) in Australia, Canada, China, France, Germany, India, Italy, Japan, Spain, the UK and US.

About 70% of Australian CEOs surveyed say AI is a top investment priority, up from 58% last year – though almost one-third are committing less than 10% of their overall investment budget to the tech.

“Australia stands at a pivotal moment in harnessing the power of AI, but adoption requires more than just enthusiasm, it requires a strategic plan that builds trust and confidence in its use,” Mr Yates said.

“Without investment, we won’t be able to reap the full productivity benefits.”