Businesses are increasingly investing in artificial intelligence (AI), with an average of 20% of their technology budgets allocated to AI initiatives, according to Nasdaq’s 2026 Outlook Survey. However, only 5% of leaders consider their organizations to be AI-native, while 71% identify as either “newbies” or “explorers” in terms of AI readiness. The primary areas of progress in AI adoption are in product development, anti-fraud and compliance efforts.
Despite the financial commitment, key barriers to increased AI integration include unclear returns on investment, legacy technology issues, and regulatory challenges. 63% of respondents believe AI will have an “evolutionary” rather than a transformative impact on the economy, and 87% feel that an AI industry bubble currently exists, although only 11% expect a significant short-to-medium-term pullback.
Looking ahead to 2026, 68% of institutional leaders are optimistic about global growth, with the top factors expected to influence economic performance being improved geopolitical relations (38%), inflation control (25%), and consumer confidence (14%).
