Australian marketers embrace AI but face data & trust hurdles
A new study has revealed that Australian senior marketing leaders are struggling with data volume and reliability, while increasingly turning to artificial intelligence and synthetic data to support their decision making.
The research, conducted by Qualtrics, surveyed over 700 global senior marketing and insights executives from businesses with more than 1,000 employees and over USD $10 million in revenue. The Australian data points to a sector at a crossroads: while Chief Marketing Officers (CMOs) are investing heavily in technology, 54% admit their teams rely on gut instinct when timely insights are not available.
Challenges for Australian marketers
Half of Australian marketing teams feel overwhelmed by the sheer amount of data they manage, with 56% reporting difficulty dealing with fragmented and disparate sources. This sense of overload makes it challenging to turn data into strategic actions, despite substantial investment in business intelligence. Nearly half of senior marketing leaders say more than 15% of their budgets are allocated to business intelligence. However, much of the collected data remains unused.
The study identifies five main obstacles impeding effective data use: the data deluge, uncertainty around return on investment (ROI), doubts regarding data quality, skepticism about new technology, and gaps in talent. Measuring the ROI of marketing initiatives is the leading business challenge for 30% of all surveyed leaders, with approximately half indicating the lack of clear ROI from existing solutions is a principal barrier to further business intelligence investment.
Lynn Girotto, Chief Marketing Officer at Qualtrics, commented:
"Guesswork is one of the most expensive strategies in business. As spending slows, companies that listen to customers and respond to real needs are better positioned to win. This is where marketing and insights leaders will demonstrate true value and they must not shy away from the tools that allow them to do this well."
Adoption of AI and synthetic data
Despite ongoing challenges, there is significant appetite for artificial intelligence (AI) and synthetic data. The report finds that 97% of Australian marketers using generative AI (GenAI) believe it has rapidly improved the strategic impact of their research, particularly through speed and cost efficiency. In addition, 91% report increased confidence in their marketing decision-making as a direct result of GenAI-based solutions.
While skepticism about AI remains a key investment hurdle for 58% of Australian marketers, adoption rates are substantial. Over half (56%) of Australian marketers now use AI-generated synthetic data, with 94% rating it as more accurate and useful than traditional data. Synthetic research is not only used to generate new customer and market insights (68%), but also to fill gaps where traditional data is limited (63%), replace or augment traditional surveys (62%), simulate customer personas (56%) and conduct market simulations (54%).
The Australian market shows a particularly strong demand for rapid, real-time market insights: 51% indicate this need is a leading driver for increased budgets, outpacing all other countries in the survey. Nearly 90% of local CMOs expect business intelligence funding to rise in 2026 in response to these demands.
Shifting attitudes towards data and technology
The data reflects a significant pivot away from traditional research methods. Australian marketers are among the fastest to embrace synthetic data, with 95% reporting they currently use synthetic research or plan to do so within the next year.
Globally, 92% of executives believe synthetic data is more accurate and useful than traditional methods, 84% say it accelerates insight generation, and 79% agree it deepens analytical understanding. Such tools are becoming crucial as Australian companies face greater difficulties personalising marketing efforts than peers in Japan (18%) or the US (23%), with 36% listing it as a key challenge.
Concerns about AI remain
Despite rapid adoption, concerns about AI and synthetic data persist. Three-quarters of executives worry about bias in AI-generated outputs, and over 90% underline the need to address demographic and ideological bias to ensure trustworthy results. The main risks identified include data security and privacy (49%), complexity integrating AI with current systems (41%), and potential inaccuracies in AI-generated data (40%).
Nevertheless, 96% of global marketing leaders view generative AI and synthetic research as beneficial, both for enhancing the capabilities of their teams and delivering a competitive advantage. According to the study, 91% of senior marketing leaders feel more confident using GenAI for market research, and 94% believe it improves their organisations' competitive positioning.
Looking ahead
With nearly every company planning to implement AI-powered marketing intelligence, many are exploring hybrid models that combine human expertise with AI. The study suggests that organisations which can demonstrate ROI, cultivate AI literacy, and address the challenges of data overload are likely to be better placed for future success.
