Australian firms facing significant AI readiness gap

Riverbed's latest AI & Digital Experience Survey 2024 has offered new insights into the adoption and preparedness for AI across Australian businesses.

The report shows notable enthusiasm for AI, but it highlights a significant gap between perceived readiness and actual preparatory measures.

The survey indicates that Australian companies are investing substantially in AI, with an average expenditure of AUD 22.9 million. However, despite 83% of these organisations believing they are ahead of their peers in AI adoption, only 35% feel fully prepared to undertake AI projects presently. This discrepancy suggests a pronounced "AI readiness delusion," implying potential strategic missteps due to overconfidence.

Looking ahead, 89% of organisations expect to be fully prepared for AI implementation within three years. Although optimism abounds, the readiness gap underscores the need for more robust preparations. Financially, IT departments are a significant focus, receiving an average of AUD 13.2 million from these AI investments.

All surveyed Australian organisations have already incorporated AI to some extent, with 68% accelerating their deployment. Currently, 55% of leaders use AI primarily to drive operational efficiencies. However, by 2027, 58% predict that AI will shift to being a major growth driver rather than just a tool for improving efficiency.

Despite these investments, AI projects are delivering mixed results. A majority of 59.24% of AI projects meet expectations, while 23.22% underperform and only 17.54% exceed expectations. These figures raise questions about the effectiveness of data strategies and overall AI readiness.

A key barrier to further AI investment identified by 38% of decision-makers is the availability of high-quality data. Moreover, data security remains a significant concern, with 79% of respondents worried about proprietary data being accessed in the public domain. This reflects ongoing fears regarding data privacy and security breaches.

Generational differences also emerged from the survey. When asked which generation of employees is most comfortable leveraging AI, 53% of respondents selected Gen Z (born 1997-2012), followed by 41% selecting Millennials (born 1981-1996). Only 6% identified Gen X (born 1965-1980) as the most comfortable, and no respondents selected Baby Boomers (born 1946-1964).

As AI becomes more embedded in business processes, there has been an increasing focus on AI observability. This approach ensures full-fidelity data coverage, providing better visibility into AI-driven IT services and helping companies manage risks and improve performance.

Additional findings from the survey include:

• AI observability is regarded as crucial for improving visibility and managing AI-driven IT services.
• 79% of decision-makers express concerns about AI's impact on data security.
• 49% of companies offer extensive AI training, while 51% provide adequate training to ensure AI literacy.
• 68% of companies are expediting AI deployment across IT services, with 28% fully integrating AI into business processes.
• 44% of IT departments use AI for event correlation, management, and automation of IT tickets.
• Respondents trust AI more for major IT upgrades (64%) than for driverless cars in city settings (36%).

While the survey illustrates the high level of investment and anticipation surrounding AI, it also highlights significant concerns and areas needing improvement, particularly in data quality and security. Australian businesses appear optimistic about the future of AI, yet the current readiness and mixed project outcomes suggest a need for more thorough strategic planning and resource allocation.