AI Risk Soars: Why Austria Sees Artificial Intelligence as the Biggest Threat to Business in 2026
For the first time, Austrian companies perceive artificial intelligence (AI) as a greater risk than cyberattacks – a stark divergence from the global picture where cyber incidents remain the top concern. This shift, highlighted in the 2026 Allianz Risk Barometer, isn’t simply about fear of the unknown; it’s a recognition that the rapid integration of AI introduces a complex web of operational, legal, and reputational vulnerabilities. Are businesses truly prepared for the fallout of increasingly autonomous systems?
The Global Risk Landscape: Cybersecurity Still Reigns, But AI is Closing In
Globally, cyberattacks continue to dominate the risk landscape, impacting 42% of companies surveyed – a new high. Geopolitical tensions and a more sophisticated threat environment are fueling this trend, particularly impacting small and medium-sized enterprises (SMEs) lacking robust security infrastructure. As Michael Bruch, Global Head of Risk Consulting Advisory Services at Allianz Commercial, explains, “Large companies’ investments in cybersecurity…have paid off, but cyber risks are constantly evolving.” The increasing reliance on third-party providers and the amplification of threats by AI itself are key drivers.
However, the most significant jump in risk perception this year belongs to AI, leaping from tenth place to second with 32% of respondents identifying it as a major concern. This isn’t limited to specific regions; AI ranks among the top three risks across the Americas, Asia-Pacific, Africa, the Middle East, and Europe. The speed of AI adoption is outpacing the development of governance frameworks and skilled personnel, creating a fertile ground for potential issues.
Austria’s Unique Perspective: Why the Focus on AI?
Austria’s prioritization of AI risk – with 44% of companies identifying it as the top threat – is particularly noteworthy. This divergence likely stems from a recent history of significant natural disasters. Daniel Matic, CEO of Allianz in Austria, notes that the “flood of the century in 2024” heavily influenced the previous year’s risk assessment. With a relatively calmer 2025, attention has shifted to the emerging challenges posed by AI.
The specific concerns in Austria mirror global trends: data leakage, manipulation, liability issues, and reputational damage. Matic emphasizes the need for “clear governance, secure data and access models as well as ongoing risk checks” to mitigate these threats. This proactive approach highlights a growing understanding that AI risk management isn’t simply a technical problem, but a strategic imperative.
The Liability Labyrinth: Who’s Responsible When AI Goes Wrong?
One of the most pressing concerns surrounding AI is the question of liability. As AI systems become more autonomous, determining responsibility for errors or harmful outcomes becomes increasingly complex. Consider a self-driving vehicle involved in an accident – is the manufacturer, the software developer, or the owner liable? This legal ambiguity is a significant deterrent to widespread AI adoption and a major source of risk for businesses.
Ludovic Subran, Allianz chief economist, points out that companies are grappling with issues related to “system reliability, data quality, integration hurdles and the lack of qualified specialists.” The potential for biased algorithms, misuse of intellectual property, and uncertain accountability further complicate the landscape.
Beyond AI: Geopolitical Risks and Supply Chain Disruptions
While AI is rapidly climbing the risk ladder, other threats remain significant. Business interruptions (BU), though slipping to third place globally, continue to pose a substantial risk, often exacerbated by geopolitical tensions and supply chain vulnerabilities. The Allianz report highlights that only a small percentage of companies consider their supply chains truly resilient.
The rise of protectionist trade policies and expanded trade restrictions is putting further pressure on global supply chains. Strategies like “friendshoring” and regionalization are gaining traction, but 29% of respondents still view BU as the greatest threat. The potential for a “black swan” event – a complete paralysis of global supply chains due to geopolitical conflict – remains a significant concern.
The Future of Risk: Adapting to a World Shaped by AI
The Allianz Risk Barometer 2026 paints a clear picture: the risk landscape is evolving rapidly, and AI is a central driver of this change. Businesses must move beyond simply acknowledging the risks and proactively implement strategies to mitigate them. This includes investing in cybersecurity, developing robust data governance frameworks, and fostering a culture of AI ethics.
Furthermore, companies need to embrace resilience and diversification. Strengthening supply chains, exploring alternative sourcing options, and building redundancy into critical systems are essential for navigating an increasingly uncertain world. The Austrian example demonstrates the importance of adapting risk assessments to local contexts and prioritizing emerging threats.
Navigating the AI Risk Landscape: A Checklist for Businesses
- Risk Assessment: Conduct a thorough assessment of AI-related risks across all business functions.
- Data Governance: Implement robust data governance policies to ensure data quality, security, and privacy.
- AI Ethics Training: Provide comprehensive AI ethics training for all employees involved in AI development and deployment.
- Cybersecurity Enhancement: Strengthen cybersecurity measures to protect against AI-powered attacks.
- Liability Insurance: Review insurance coverage to ensure adequate protection against AI-related liabilities.
Frequently Asked Questions
Q: What is the Allianz Risk Barometer?
A: The Allianz Risk Barometer is an annual survey of over 3,300 risk management experts worldwide, identifying the most significant corporate risks.
Q: Why is Austria more concerned about AI risk than other countries?
A: Austria’s recent experience with significant natural disasters has shifted the focus to emerging threats like AI, while globally, cyber risks remain the primary concern.
Q: What are the key liability risks associated with AI?
A: Key liability risks include errors in automated decision-making, biased algorithms, misuse of intellectual property, and uncertainty about accountability for AI-generated harm.
Q: How can businesses prepare for the increasing risks associated with AI?
A: Businesses should invest in data governance, AI ethics training, cybersecurity, and appropriate insurance coverage, as well as proactively assess and mitigate AI-related risks across all operations.
What are your predictions for the future of AI risk management? Share your thoughts in the comments below!
