AI adoption risks now top concerns for US business leaders: Vistra

Core Insights - AI adoption has emerged as the primary business risk for senior executives, surpassing concerns about economic downturns and supply chain issues [1] - Data security and protection are significant concerns for nearly half of AI users, with market volatility accelerating investment decisions [2] - A majority of businesses prioritize technology and digital transformation, with a notable focus on AI adoption [3][4] AI Adoption Risks - 50% of executives view AI adoption as their greatest business risk, compared to 48% for economic downturns and 43% for supply chain issues [1] - 49% of external AI solution users identify data security as their top risk, while 55% cite data protection as their main compliance issue [2] Investment and Decision-Making - 66% of surveyed executives report that market uncertainty is prompting quicker investment decisions, with over one-third describing this acceleration as "significant" [2] - 72% of businesses utilize AI in strategic decision-making, with only 1% not implementing any form of AI [4] Workforce Implications - 45% of executives would consider leaving their employer if it lags in AI adoption, and 30% believe falling behind would impact their long-term loyalty [3] Applications of AI - The most common applications of AI include cybersecurity threat identification (73%), supply chain risk management (69%), and automated regulatory compliance processes (67%) [4] Future Outlook - 85% of participants anticipate that AI adoption will be essential for growth in the next three years [4] Supply Chain Strategies - 59% of respondents are shifting supply chain activities towards Latin America, with Southeast Asia as the second preferred region [5] Regulatory Concerns - 28% of executives cite new policies, including ESG requirements and AI directives, as their primary concern, closely followed by tariffs and trade policy [6] Employment Adjustments - 32% of executives report hiring freezes or workforce reductions due to uncertainty around trade [6] Competitive Landscape - AI is now viewed as a defining factor in competitiveness, with businesses perceiving the risk of falling behind in AI as greater than economic or regulatory challenges [7]