AI lag puts Australian firms at risk of losing ground

TP has warned that many Australian companies are moving too slowly on artificial intelligence and risk losing ground to international competitors adopting the technology faster.

Miranda Collard, TP's Chief Executive Officer for the Americas, including Australia, said some organisations were trialling AI in isolated pockets rather than changing how work gets done across the business. She said this approach increases the risk of wasted investment and operational drift.

"We estimate around 70% of companies going it alone on AI are failing because they treat it as a tool-based upgrade rather than a structural reset of their business," Collard said.

TP, formerly known as Teleperformance, provides digital business services and customer operations for large companies. It operates in close to 100 countries and works across sectors including banking, telecommunications and insurance.

Patchy adoption

Collard described AI as a shift that goes beyond software deployments and pilots. She said firms need clearer operating models and stronger governance as AI moves into core workflows. That includes deciding which tasks to automate, how roles change, and how performance is measured.

Her comments come as survey findings point to growing concern among senior leaders. An annual survey of C-suite executives found 63% rated new technologies as their number one concern. Digital transformation and optimisation ranked second at 53%.

Separate figures from Dataiku show AI oversight has moved onto board agendas. It found 95% of Chief Information Officers brief boards on AI performance at least quarterly. Dataiku also reported that 85% of CIOs said explainability gaps had delayed or stopped AI projects.

Workforce changes

Collard said AI adoption will reshape the workforce, but she rejected the idea that the impact will be measured solely by job losses. She described a redesign of roles and processes, with routine work shifting to automation and people focusing on tasks that require judgment and interpersonal skills.

"There's no doubt we are seeing a structural reset of the workforce, but successful companies will be those that balance automation with human insight and investment in workforce capability. We are redefining human roles with AI absorbing the work we don't enjoy, like status reports, scheduling and data entry."

She also pointed to AI's use in analytical tasks, saying it can speed up decision-making and provide signals on changing market conditions.

"AI enables faster decision-making. It can predict market trends and consumer behavior, which is crucial in giving businesses the foresight to adjust their strategies and pricing," Collard said.

Human interactions

Collard said people will still be needed for complex customer interactions, particularly emotionally charged conversations that require empathy and strong communication.

"You're not going to be able to automate crucial, emotionally charged interactions. You will still need people who are equipped to handle them with empathy and skill. That's where emotional intelligence (EI) and authentic connection are irreplaceable," she said.

Many companies have taken a similar approach in customer operations, where automated systems increasingly handle routine enquiries and triage, while staff manage more sensitive cases. In regulated industries, AI also raises questions about auditability and accountability, particularly when tools influence decisions that affect consumers.

Australia's pace

Anish Mukker, TP's President for India, the Philippines, Australia and New Zealand, said Australia has been slower to adopt AI than other markets, linking the pace to greater caution among local companies.

"Other international markets have been much more aggressive in their uptake of AI, but I think Australian businesses are fearful of public scrutiny," Mukker said.

He said large companies in sectors with high customer volumes and complex compliance demands face pressure to clarify their position on AI. He highlighted industries where the mix of automation and human service remains central to the customer experience.

"To stay current, all major companies, especially banks, telcos, insurers and tech companies, will need to confront the big questions about the uptake of AI in the near future," he said.

Mukker said workforce planning will be a differentiator as companies bring AI into daily operations. That includes training, redeployment and management practices for teams working alongside automated systems.

"The real competitive edge will come from how effectively organisations can upskill, redeploy and empower staff to work alongside AI," Mukker said.