Australia leads Asia Pacific in AI innovation & growth

Recent research by Intel and IDC has revealed that Australia is leading the Asia Pacific region in Artificial Intelligence (AI) growth and innovation. The IDC Asia/Pacific AI Maturity study assessed enterprise, government, and socio-economic dimensions across eight regional markets, finding Australia to be an AI Innovator, surpassing the Asia Pacific average in all areas.

Australia's status as an AI Innovator is attributed to its strong technological infrastructure and robust data management strategies. Several exemplary AI initiatives have been noted within the country. For instance, Intel is collaborating with Western Sydney University to create DeepSouth, the world's first supercomputer capable of brain-scale simulation. This project aims to enhance our understanding of the brain and develop large-scale AI applications.

In the retail sector, software provider Shelfie is using data combined with edge AI vision analytics and Intel technologies to improve customer experiences and inventory management. These efforts underline Australia's solid foundation in AI maturity and competitiveness.

The study highlights Australia's advanced position among the eight analysed markets, which include India, Indonesia, Japan, Korea, Malaysia, Singapore, and Taiwan. Alongside Japan and South Korea, Australia is at the forefront of AI innovation. Projections indicate that AI spending in Australia will increase at a compound annual growth rate (CAGR) of 25.4% from 2023, reaching USD $8.3 billion by 2027, making it the second-highest AI spender in the region, just after Japan.

The banking, financial services and insurance (BFSI) sector leads AI spending in Australia, with a focus on cost reduction and efficiency through automation. The government is the second largest AI investor, with significant efforts directed towards integrating AI into public services and digital infrastructure. However, only 7% of surveyed Australian enterprises believe that AI adoption is central to their competitive edge, indicating a gap between AI utilisation and excelling in AI deployment.

Challenges to AI adoption in Australia include unclear business outcomes and inadequate technology performance. Furthermore, Australia's smaller and widely dispersed population of 26 million presents scalability issues, increasing operational costs for expanding technological infrastructure. High tax rates also pose a challenge, sometimes driving high-end AI talent and innovation offshore.

To maintain and enhance its competitive position in AI, Andrew McLean, Managing Director of Intel Australia & New Zealand, recommends that organisations prepare for hybrid AI. This involves adapting existing technology infrastructure to deploy AI effectively across data centres, clouds, clients, and edges. An enabling ecosystem for AI, characterised by open, flexible, and scalable platforms, is crucial. McLean also stresses the importance of fostering AI understanding across all levels of an organisation, including non-technical workers, through low-code and no-code AI tools.

Incorporating these strategies will enable Australia to climb higher on the AI maturity ladder and continue being competitive globally. The full report offers a more detailed analysis of AI adoption across the Asia Pacific region and Australia.