Australian firms not ready for AI despite high adoption rate

A recent study conducted by INFORM Australia together with YouGov has revealed that Australian companies face a significant gap in readiness for leveraging Artificial Intelligence (AI) and Process Optimisation.

Although 78% of the executives surveyed reported their organisations currently utilise AI, only 32% of them believe they are fully prepared for its successful implementation.

The "AI Readiness in Australian Organisations" study surveyed more than 300 senior decision-makers from organisations either currently using or planning to deploy AI. It highlights several barriers to AI adoption. Notably, 26% of respondents pointed to a lack of talent with Artificial Intelligence capabilities as a hindrance, while fragmented data environments and resistance to change from employees and leaders were identified as barriers by 24% and 20% of respondents, respectively.

Dr Paul Flachskampf, Chief Executive Officer of INFORM Australia, commented on the findings: "Australian businesses clearly recognise AI's transformative potential, with 85% of decision-makers acknowledging its significant benefits. However, our study reveals critical work remains to ensure true AI readiness across Australian industry.

"Without robust AI strategies, integrated data infrastructure, and a skilled workforce, companies risk lagging in the digital transformation race. Fostering cross-functional collaboration and prioritising ethical considerations are crucial for successful Artificial Intelligence implementation," Dr Flachskampf said.

Other key findings from the study indicate that an overwhelming majority, 90%, believe AI can enhance efficiency and productivity, while 87% think it has boosted or can boost profitability. The top AI use cases identified were Research and Development (44%), IT (44%), and marketing/sales (43%).

Despite a high percentage of organisations having an AI strategy in place (59%), 31% admit their strategy is poorly defined. Additionally, 86% of respondents claim their technology infrastructure is AI-scalable, yet 62% struggle with 'siloed' data, indicating significant issues with data integration and accessibility.

Dr Flachskampf added, "This research provides a crucial snapshot of AI preparedness in Australia. It underscores the urgent need for organisations to address critical gaps in data integration, talent acquisition, and strategy development to fully harness the potential of AI-driven process automation and optimisation."

The findings underscore the importance of companies formulating comprehensive AI strategies and developing integrated data infrastructures to remain competitive in an increasingly digital landscape. The report stresses the need for investment in talent acquisition with AI capabilities and fostering an organisational culture that can adapt to change, ensuring Australian businesses do not fall behind in the global race towards digital transformation and optimisation using AI technologies.