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AI identified as top tech trend in Australia for 2025

Yesterday

The Australian Tech Leaders Survey 2025 has been released by the Tech Council of Australia and Datacom, highlighting artificial intelligence (AI) as the preeminent tech trend for the coming year.

The survey provides insights from tech leaders on various issues affecting the tech sector, with AI identified as a key driver for improving efficiency and productivity in 2025. One-third of respondents pointed to AI as offering the greatest potential for businesses in the upcoming year.

Laura Malcolm, Managing Director at Datacom Australia, noted, "It is a significant marker of where we are in our AI journey that Australian businesses expect that in 2025 the greatest opportunities will come from using technologies – like AI and automation – to drive operational efficiencies." She added that responsible deployment of generative AI tools could enhance productivity and allow teams to engage in more fulfilling work.

Damian Kassabgi, CEO of the Tech Council, emphasised the potential of AI in transforming business operations across the economy. "While 2024 was a big growth year for AI, there is huge potential for businesses to further embrace AI to work smarter and boost productivity," he said. Kassabgi noted that AI adoption has the potential to generate 200,000 jobs and USD $115 billion in economic value by 2030, crucial for addressing Australia's productivity decline.

The survey also highlighted other significant tech trends for 2025, including cybersecurity and technologies related to sustainability and the circular economy. However, it underscored tech leaders' concerns about Australia's economic landscape, with 93% of respondents indicating the nation is not adequately addressing productivity challenges.

Malcolm highlighted a consensus among industry leaders that increased tech investment and adoption, along with skills training, are essential for reversing the country's declining productivity. She stated, "There is a strong consensus that as a country we are not doing enough to tackle our productivity challenges and that greater tech investment, tech adoption and skills training would help to reverse our falling productivity."

Economic uncertainty emerged as the top concern for tech companies, with 39% of respondents identifying it as a threat, followed by a lack of skilled personnel, as raised by 32% of participants.

Aubrey Blanche, Vice President of Equitable Operations at Culture Amp, remarked on AI's potential transition from experimental to a competitive advantage. "2025 will be the year when AI goes from being an experiment to a competitive advantage, especially when it comes to data-driven decision making and finding more effective and efficient ways to achieve business goals," Blanche explained.

Blanche commented on AI's role in improving decision-making processes and building trust within organisations. "This decision making—especially around their talent—will be critical. Our lake of global data has found nearly half of employees aren't happy with the way decisions are being made, and 2 out of 5 don't agree that their company is effectively directing resources toward its goals." She emphasised the importance of data security and bias prevention when integrating AI tools internally.

The survey revealed shifts in business priorities towards efficiency and growth, deviating from a focus on talent sourcing and the employee value proposition witnessed in previous years. Moreover, there is a growing need for trained workers, with 16% of respondents indicating that addressing skills shortages is essential—a rise from 11% in 2024. Despite recognising the necessity of an Environmental, Social, and Governance (ESG) strategy, 40% expressed concerns about cost pressures affecting their sustainability goals.

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