Australia ranks fourth globally in GenAI maturity & usage

A recent global study has placed Australia fourth in the world for its usage and maturity in Generative AI (GenAI), following China, the UK, and the US. This study, which surveyed 1,600 key decision-makers across major global markets, sheds light on Australia's advanced approach to adopting and implementing GenAI technologies.

According to the research commissioned by SAS and conducted by Coleman Parkes Research, almost two-thirds (63%) of Australian respondents reported using GenAI in their organisations. This positions Australia above the global average, with only China (83%), the UK (70%), and the US (65%) reporting higher usage rates.

Regarding full implementation of GenAI technologies, the US leads with 24% of organisations having fully integrated these systems, closely followed by China at 19%, the UK at 11%, and Australia at 8%. Although Australia ranks fourth in full implementation, it is notable that 55% of Australian organisations use GenAI without it being fully implemented, surpassing the global average of 43%.

Stephen Saw, Managing Director at Coleman Parkes, remarked, "While China may lead in GenAI adoption rates, higher adoption doesn't necessarily equate to effective implementation or better returns. In fact, the US nudges ahead in the race with 24% of organisations having fully implemented GenAI compared to 19% in China."

The study also delved into the economic impact of AI and GenAI. A 2023 report by McKinsey estimated that GenAI could add between USD $2.6 trillion and USD $4.4 trillion annually across various use cases, potentially increasing the overall influence of artificial intelligence by 15% to 40%.

In terms of understanding GenAI, 87% of Australian respondents indicated a good or moderate personal understanding of the technology, which is higher than the global average of 82%. Craig Jennings, Vice President and Managing Director ANZ at SAS, commented, "Australia is punching above its weight globally when it comes to maturity in understanding and adoption of GenAI technologies. We are working with businesses across various vertical industries, spanning financial services, life sciences, retail, and more, to take them on their AI and GenAI journeys."

The study highlighted that Australian businesses recognise the benefits GenAI can bring, such as improved employee experience and satisfaction (91%), operational cost savings (85%), and higher customer retention (89%). However, Australian organisations also face significant concerns, including data security (72%), data privacy (64%), ethical implications (64%), and over-reliance on the technology (59%).

Survey participants indicated that the biggest challenges in implementing effective GenAI governance in Australia are technological limitations (32%), lack of transparency and accountability (28%), and a lack of clear guidelines or standards (21%).

The research showed that industries such as banking, insurance, telecommunications, and retail are leading in the use and full implementation of GenAI technologies. For instance, 17% of banking organisations have fully implemented GenAI, followed by telecommunications at 15%, insurance at 11%, and life sciences also at 11%.

Across departments, 86% of sales teams in Australia are either using or planning to use GenAI, followed by 83% in marketing, and 86% in IT. Additionally, research and development and customer/field services departments also show high engagement with GenAI technologies.

Despite the enthusiasm for GenAI, the study found significant gaps in knowledge among senior technology decision-makers. Only 9% of leaders are extremely familiar with their organisations' GenAI adoption strategy, and even among those who have fully implemented GenAI, only 25% are extremely familiar with their strategy. Concerningly, 45% of Chief Information Officers (CIOs) and 36% of Chief Technology Officers (CTOs) reported they fully understand their organisation's AI adoption strategy.

The study concludes that while there are obstacles in widespread GenAI implementation, early adopters have already seen benefits such as improved employee satisfaction (89%), operational cost savings (82%), and higher customer retention (82%). These findings underline the significant potential and challenges of integrating GenAI into global business processes.