AI investment in ANZ increases fourfold by 2025

Lenovo Infrastructure Solutions Group has published its latest 'CIO Playbook 2025 - It's Time for AI-nomics' report, shedding light on the adoption and investment trends of AI in Australia and New Zealand (ANZ).

The report underscores a significant fourfold increase in AI investment within ANZ for 2025, which surpasses the 3.3-fold rise seen on average across the Asia-Pacific (AP) region. This surge indicates a robust local commitment to AI transformation, though the adoption still appears to be in its nascent stages, with only 10% of businesses having systemically adopted AI across their operations. In contrast, 58% of organisations are either still evaluating AI or planning implementations in the coming year.

Challenges persist, with data quality being the most commonly cited barrier to AI success in the region. This is followed by a misalignment between IT and business leaders, highlighting the necessity for more robust data management strategies. Meanwhile, generative AI has emerged as a major driver of AI investment, accounting for 38% of AI expenditures in ANZ for 2025. IT operations are leading the use cases, followed by sales and finance initiatives.

The report notes a prevailing trend of organisations in the AP region aiming for a 3.6-fold return on investment from AI projects, suggesting that balancing experimental AI approaches with scalable solutions is critical. This incremental approach in ANZ reflects a desire to enhance digital innovation, decision-making, and mitigate cyber threats, all whilst dealing with issues such as data quality and IT infrastructure costs.

The study also identifies a growing need for better organisational readiness, given that only 21% of CIOs in ANZ have fully implemented enterprise AI governance, risk, and compliance (GRC) policies. Sumir Bhatia, President of Asia Pacific Infrastructure Solutions Group at Lenovo, highlighted this priority: "Business priorities are shifting in Asia Pacific. For 2025, governance, risk, and compliance have jumped 12 spots to become the top priority, highlighting the focus on secure and responsible AI. Employee productivity has also climbed from #7 to #2, underscoring its growing importance. Lenovo is committed to making AI accessible, ethical, and impactful—helping businesses of all sizes thrive in the AI era."

The report further reveals a preference for on-premise and hybrid solutions to drive AI workloads within the region. Specifically, 66% of ANZ organisations favour these options, citing the need for secure and low-latency environments. Silke Barlow, Country General Manager, Lenovo Australia, noted: "Hybrid architectures offer the best of both worlds—scalability and control. Globally, 63% of organisations choose on-premise and hybrid infrastructures for AI, with ANZ leading the way—surpassing both the global and AP averages with a higher adoption rate. This alignment demonstrates a clear focus on driving innovation while staying secure and compliant for the unique demands of AI. With its end-to-end cutting-edge AI solutions, smarter infrastructure, and strategic partnerships, Lenovo is driving Smarter AI for all."

The study also draws attention to the adoption of AI-powered PCs in the region, noting that while adoption is still in the preliminary stages, there are signs of productivity gains. In ANZ, 63% of organisations are planning to integrate AI-powered PCs. With the technology showing potential for return on investment, adoption is expected to accelerate, supporting wider digital workplace solutions.

Professional AI services are becoming increasingly important for organisations as they navigate the complexities associated with scaling AI efforts. ANZ CIOs appear to be ahead of the AP curve, with 37% actively using professional services compared to 34% across the AP region. An additional 46% of ANZ CIOs are considering such engagements. Fan Ho, Executive Director and General Manager of Solutions and Services Group, Lenovo Asia Pacific, remarked: "AI adoption is not just about the short-term gains. Organizations need to invest in the efficiency of the design, deployment and integration of AI solutions to their operations that enable tracking of the impact. Professional AI services play a key role here and help organizations successfully adopt AI through outcome-led approach. Solutions like Lenovo's AI Fast Start further accelerate this process, helping businesses quickly pilot, optimize, and scale AI initiatives with expert guidance and tested frameworks."