How can aerospace and defense organizations modernize legacy systems without disrupting operations?

Legacy IT infrastructure is one of the industry’s most pressing challenges, limiting data accessibility, slowing AI‑driven analytics and creating operational and security gaps. With 36% of A&D leaders prioritizing infrastructure modernization, organizations are seeking ways to improve performance while supporting emerging technologies. Protiviti supports A&D organizations in modernizing technology foundations so they can reduce risk, improve reliability and accelerate innovation.

What AI adoption challenges are slowing progress for A&D organizations?

A&D executives cite the inability to deploy AI at a competitive pace (29%), uncertain ROI (29%), and increased third-party risk (27%) as their top hurdles. Many organizations also struggle with integration and workforce readiness, making it difficult to scale AI beyond early pilots. Protiviti helps organizations implement responsible AI frameworks and operational strategies so AI delivers sustained, enterprise-wide value.

What cybersecurity risks should A&D leaders prepare for in 2026?

Cyber threats are the #1 near-term risk for the A&D sector, driven by CMMC requirements and rapidly advancing, state-sponsored attack tactics. These attacks increasingly target intellectual property, supply chains and critical systems using methods such as zero-day exploits and AI-enabled reconnaissance. Protiviti helps organizations strengthen cyber resilience, improve third-party oversight and meet evolving regulatory expectations.

Where are aerospace and defense executives planning to invest most in the next two to three years?

The top investment areas include data privacy (48%), cybersecurity (42%) and infrastructure modernization (36%), reflecting the sector’s focus on safeguarding sensitive information and enabling advanced technology. These priorities support improved resilience, readiness for AI and compliance with expanding global regulations. Protiviti helps A&D organizations turn these investment areas into measurable improvements in performance, security and operational agility.

What long-term risks should A&D executives prepare for as they plan the next decade?

The top 10-year challenges include long-term security and privacy concerns (58%), evolving AI deployment risks (41%) and increasing sustainability requirements (38%). These areas reflect expanding regulatory expectations and the growing complexity of autonomous systems and digital platforms.

Top Risks 2027: Energy & Utilities Insights

5 min read

2027 Executive Perspectives on Top Risks and Opportunities

Energy and utilities leaders have spent years building “disruption fitness.” Now it's being tested. Shipping route closures, shaken LNG markets, extreme weather and regulatory uncertainty are converging, even as AI-driven data center buildouts create a generational growth opportunity. Protiviti's 2027 findings show leaders more optimistic about growth than a year ago and more confident than global peers in their ability to transform and respond, even as concern rises across a wider range of risks. They're investing in infrastructure modernization, cybersecurity and supply chain management to keep pace. Read the energy and utilities brief to see how leaders are powering through disruption and volatility.

Explore the 2027 energy & utilities insights

Watch the 2027 cross-industry webinar on-demand

Where energy & utilities leaders see the greatest growth opportunities over the next two to three years

Energy and utilities leaders are markedly more optimistic than a year ago, with all three growth measures rising even as risk concerns climbed. AI-driven demand for electricity is a major draw, as data center buildouts create opportunities in generation, transmission and new partnerships.

73 %

see significant opportunities to grow revenue.

66 %

see significant opportunities to expand strategic alliances and partnerships.

59 %

see significant opportunities to grow beyond their headquarters' domestic market.

Explore featured solutions and industries

Powering through disruption depends on modern infrastructure, secure operations, resilient supply chains and practical AI. These capabilities help energy and utilities leaders capture growth while managing volatility.

Artificial Intelligence (AI)

Prioritize, build and embed AI in real workflows, with governance, security and change enablement that help teams adopt it and deliver measurable value.

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Cybersecurity

Protect data and critical assets across every layer of the organization, from cloud and identity to incident response, so sensitive information stays secure.

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Supply Chain Operations & Performance

Design and run agile supply chain networks, from integrated planning and asset reliability to intelligent distribution, aligned to business strategy.

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Technology

Modernize infrastructure and applications across cloud, ERP, data and cybersecurity, connecting technology strategy to execution when legacy systems limit growth.

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Power, Utilities & Renewables

Manage regulatory, financial, operational and technology risks, with support across operational efficiency, advanced analytics and IT and OT cybersecurity.

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Oil, Gas & Resources

Teams across upstream, midstream, downstream and mining help manage price uncertainty, optimize operations and strengthen supply chain, data and cyber.

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Discover our full catalog of insight briefs for additional research findings and expert commentary related to the 2027 report on Top Risks and Opportunities.

Insights by industry
Insights by organizational role

Insights by industry

Aerospace & Defense

CPG & Retail

Financial Services

Healthcare

Higher Education

Manufacturing & Distribution

Private Equity

Non Profit

Technology, Media & Telecommunications

Insights by organizational role

Finance Teams

Information Security Teams

Internal Audit Teams

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Technology & Data Teams

FAQs

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Where do energy and utilities leaders see the greatest growth opportunities?

Revenue growth leads, with 73% seeing significant opportunity, up from 61%, a sharp contrast to global results, where revenue optimism declined. AI is a major driver: data centers need unprecedented amounts of electricity, and the capacity to build and modernize power infrastructure is emerging as a critical bottleneck. New partnerships are opening up too, as some midstream companies build pipelines to deliver natural gas directly to data centers.

What are the top risks for energy and utilities companies in 2027?

Natural disasters and geopolitical instability tie for first at 3.39 on a five-point impact scale, followed by regulatory change (3.35), climate change and sustainability requirements (3.31) and third-party risks (3.26). Geopolitical concern rose most sharply, from 2.91. Unlike global leaders, who focus on protecting the enterprise, energy and utilities leaders are most concerned with risks that require them to respond, from shipping route closures to extreme weather that strains aging grids.

Where are energy and utilities executives planning to invest most in the next two to three years?

Infrastructure modernization leads, with 46% ranking it a top investment priority, followed by cybersecurity and supply chain management. Modernization spans internal IT and operational technology (OT) as well as grid and energy infrastructure. The AI era has created a “first mile” problem: the generation and transmission capacity needed to power data centers. Aging grids need upgrades at scale, and new power sources require modern technology and operations behind them.

What is holding energy and utilities companies back from realizing full value from AI?

The biggest hurdle is integration. Energy and utilities leaders rank integrating AI with existing technologies, processes and the workforce as their top AI priority, followed by workforce readiness and governance. Data in supervisory control and data acquisition (SCADA) and other OT systems must be kept separate from business systems to meet critical infrastructure requirements, so leaders have to weigh enterprisewide AI against keeping critical operational data secure.

What long-term risks are energy and utilities executives most focused on?

Geopolitical challenges, markets and economies, and sustainability are the top long-term concerns, with supply chains and third-party ecosystems just outside the top three. Leaders see geopolitics and sustainability as structural risks they'll still face a decade from now, not one-off threats. That points to building geopolitical scenarios into capital planning, diversifying supply sources and keeping the flexibility to redirect resources quickly when disruption hits.