Australian enterprises lead in AI adoption but face data hurdles

Australian enterprises are among the world leaders in adopting artificial intelligence, yet data readiness continues to challenge many organisations, according to a recent global survey conducted by OpenText in partnership with the Ponemon Institute.

The report, titled "The Challenges to Ensuring Information Is Secure, Compliant and Ready for AI", draws insights from nearly 1,900 senior IT and security leaders globally, with close to 200 respondents hailing from Australia. It shows that 51% of Australian enterprises have already integrated AI into their IT and business strategies, representing one of the highest adoption rates internationally.

Despite these figures, only 20% of Australian respondents feel very confident in their ability to measure return on investment (ROI) for securing and managing the information that supports their AI initiatives.

Strategy vs readiness

The research finds that enthusiasm for AI in Australia is not matched by operational preparedness. With AI ranking high among strategic priorities for Chief Information Officers, a lack of information readiness continues to slow the effective and secure deployment of AI in business.

The report highlights that effective information management is becoming increasingly critical for realising the benefits of AI adoption. Simplified systems, robust data security practices, and better-prepared staff are now key to enabling successful AI deployment and scaling initiatives beyond initial projects.

Complexity stands out as a major challenge: 80% of Australian IT and cybersecurity leaders in the survey cited reducing complexity as essential, very important, or important to maintaining security. Nearly half (47%) identified unstructured data as a principal source of this complexity.

Data governance is a recurring theme in risk management. Data governance frameworks are the most common tactic for mitigating AI risks, chosen by 45% of respondents, followed by AI-specific security programs (37%) and staff security awareness training (37%).

Confidence in demonstrating ROI from information management investments remains low. Just 42% expressed they are "very" or "highly confident" in showing the return from securing and managing data assets.

AI paradox

The survey reveals a pronounced disparity between optimism for AI and the organisational readiness required to responsibly deploy it. While 52% of Australian leaders rank AI adoption as a strategic priority and 53% feel confident or highly confident in demonstrating ROI from these initiatives, reducing AI security and legal risks is proving challenging. A majority (54%) described this task as "very difficult" or "extremely difficult".

Compounding these hurdles, less than half (41%) of respondents reported alignment between IT and security goals and overarching AI strategy drivers. Nonetheless, 48% indicated that their organisations have hired, or are considering hiring, a chief AI officer or chief digital officer to provide leadership in this area.

This research confirms what we're hearing from CIOs every day. AI is mission-critical, but most organisations aren't ready to support it. Without trusted, well-governed information, AI can't deliver on its promise. At OpenText, we're helping IT and security leaders close that gap by simplifying information complexity, strengthening governance, and ensuring the right information is secure and actionable across the enterprise.

The adoption of generative AI (GenAI) is on the rise, with 29% of Australian organisations already integrating these tools and another 31% planning to do so within the next six months. The most common use cases for GenAI cited by respondents are in security operations (45%), software development (43%), and incident response (37%).

Conversely, agentic AI remains in early stages, with only 17% adoption, while a further 19% of organisations plan to implement it in the following six months. Only 29% currently view agentic AI as a highly important component of their business strategy.

Best practices for AI readiness

The report outlines several best practices from those organisations that have invested in AI and information readiness. These include identifying and protecting sensitive data through strong access controls and anomaly detection, implementing responsible AI with robust governance and regular checks for model bias, and securing data with encryption throughout its lifecycle - from storage and transit through to AI-enabled processing.

In addition to technical and operational challenges, the findings indicate that Australian enterprises face ongoing pressures from insider risks, pressure to demonstrate the value of AI and IT investments, and the broader challenge of managing escalating security complexity.

The Ponemon Institute's methodology for this research involved surveys across a range of industries, including financial services, healthcare, technology, and manufacturing, from senior decision-makers in regions including North America, the United Kingdom, France, Germany, Australia, and India.