Australian finance sector leads world in AI & cybersecurity push

Australian financial services firms are turning their attention to cybersecurity and artificial intelligence adoption as they navigate digital transformation and seek to enhance resilience, a new study from Broadridge has found.

The inaugural Australia edition of the Digital Transformation & Next-Gen Technology Study surveyed over 50 senior financial leaders in Australia, providing insight into the local industry's current technology focus and operational priorities. The findings reflect a domestic trend toward putting cybersecurity and data excellence at the forefront of operations, in contrast to earlier models that prioritised swift business expansion.

Cybersecurity under scrutiny

One of the report's key findings is the strong emphasis Australian firms place on cybersecurity. Seventy-three per cent of respondents said they use cybersecurity technology in their operations or processes, notably higher than the global average of 66 per cent. Immunity from cyberattacks was ranked by 65 per cent of firms as one of their top three priorities for driving digital transformation, a figure also ahead of global peers.

This heightened focus appears to have led to greater confidence in incident response, with 70 per cent of Australian firms indicating belief that they could recover from a cyber threat within three days. This compares to 67 per cent globally.

The pressure to improve cybersecurity is being driven by both regulatory factors and high-profile security breaches. Thirty-one per cent of firms cited rising cybersecurity risks as a significant inhibitor of innovation, above the 27 per cent global average.

"Cybersecurity in Australia has moved past hypotheticals. Given the high-profile breaches we've seen in the Australian market, leaders aren't just asking if they will be attacked, but how quickly and confidently they can respond when it happens," said David Runacres, Asia-Pacific President at Broadridge.

AI adoption outpaces global

The report found Australian financial services firms are moving quickly to harness artificial intelligence, outpacing global peers in both adoption rates and investment. Sixty-seven per cent of Australian organisations report using general AI in operations, compared to 57 per cent globally. Adoption of generative AI is also higher at 45 per cent, against a global benchmark of 31 per cent. This trend is reflected in investment intentions, with 74 per cent of Australian firms expecting to make moderate to large investments in generative AI over the coming year.

AI is being embraced primarily for its perceived benefits to productivity and efficiency. Seventy-three per cent of respondents said they expect AI to have a high or very high impact on employee productivity, with 51 per cent expecting significant reductions to operational costs as a result of AI uptake. These figures are largely in line with global sentiment.

"True digital transformation comes from laying strong foundations - prioritising trust, data quality, and resilience - before accelerating into growth. What we are hearing from our Australian financial services clients is that they are focusing less on the next quarter and more on the next decade," said Danielle Gerace, Australia Senior Country Officer at Broadridge.

Analytics and data infrastructure

Alongside their accelerated AI adoption, Australian firms are also ahead in their use of advanced analytics for real-time insights. Sixty-seven per cent are leveraging advanced analytics, outpacing the global average of 44 per cent. The study attributes this effectiveness to comparatively strong data governance frameworks and infrastructure.

Fewer Australian companies report issues with data quality or data silos. Thirty-seven per cent pointed to data quality challenges, compared to 40 per cent globally, while 40 per cent cited data silos as an obstacle, down from 47 per cent globally. Sixty-one per cent of Australian firms said they have well-defined data architecture and governance, also above the international average.

Many organisations nevertheless score themselves moderately on platform maturity, though the study notes stronger capabilities in applying data insights to inform decision-making.

Outlook reflects risk and resilience

The report suggests Australian financial services firms are responding to high-profile challenges by investing both in robust cyber defences and technology that supports operational efficiency. Twelve per cent of local respondents are planning very high levels of investment in cybersecurity technology over the next two years, a higher rate than the 8 per cent seen globally.

The findings come at a time when resilience, regulatory compliance and data excellence are taking priority in business strategies for many in the sector. Broadridge's platforms reportedly support the processing and generation of more than 7 billion communications each year, underpinning a daily trading average of over $15 trillion across equities, fixed income and other securities globally.

The survey was conducted by Phronesis Partners, using responses from senior technology and operations leaders across wealth management, capital markets and asset management, both in Australia and globally.