AI becomes both risk and reward for businesses

By Vriti Gothi

Artificial Intelligence (AI) has overtaken economic uncertainty as the top concern for US business executives, according to a new pulse survey from Vistra, a global leader in business and corporate services. The study, which polled 251 senior decision-makers at US mid-market corporates, highlights a striking shift in business priorities as leaders confront both the promise and peril of emerging technologies.

Half of the respondents ranked AI implementation as their leading business risk, ahead of an economic slowdown and supply chain disruption. The findings suggest that the rise of AI is reshaping boardroom agendas, with data security and regulatory compliance now central to corporate risk management. Among firms already using third-party AI systems, 49% identified data security as their most urgent risk, while 55% cited data protection as their top compliance concern. Executives expressed cautious optimism, with one noting that while AI offers immense efficiency gains, it must be deployed responsibly to safeguard privacy.

Despite growing apprehension, the drive to innovate is intensifying. Two-thirds of respondents said market volatility is accelerating their technology investment decisions, with a third describing the pace as significant. For 84% of executives, technology and digital transformation now represent the number one investment priority. The report underscores how uncertainty is pushing firms to act faster, with innovation increasingly viewed as a hedge against disruption.

Talent dynamics are also being reshaped by AI adoption. Nearly half of those surveyed said they would consider leaving their company if it lagged significantly in AI deployment, while another 30% admitted that slow adoption would affect their long-term loyalty. The survey found that 72% of companies already use AI for strategic decision-making, with the top use cases spanning cybersecurity threat detection, supply chain risk management, and automated regulatory compliance. Only 1% of companies reported not having implemented AI yet, and 85% said AI will be a key growth driver over the next three years.

Jim Lee, Executive Vice President, Americas, at Vistra, said the findings reflect a defining moment for corporate strategy. “AI has shifted from being a promising innovation to a defining factor in competitiveness. Despite mounting compliance and data risks, businesses now see falling behind in AI as a greater threat than an economic slowdown or regulatory change,” he said. Lee described this as a “paradox of progress,” where AI anxiety and ambition are rising together. “While companies fear what AI can do if mismanaged, they fear being left behind even more.”

The survey also revealed a sharp realignment in supply chain strategies. Nearly 59% of respondents said they are redirecting supply chains to Latin America, making it the top alternative to China, followed closely by Southeast Asia at 57%. EMEA, in contrast, lags at 22%, underscoring a decisive pivot toward the Americas in global sourcing.

On the policy front, regulatory change has emerged as the top concern for 28% of executives, slightly ahead of tariffs and trade policies. New ESG standards, financial regulations, and AI governance frameworks are contributing to a complex compliance environment. At the same time, ongoing uncertainty over trade and tariffs continues to weigh on employment plans, with nearly one-third of firms reporting hiring freezes or workforce reductions.