Mid-market organisations in Australia are demonstrating a strong inclination towards artificial intelligence with the expectation of significant returns on investment, according to a new report by Avanade.
The Avanade Trendlines: AI Value Report 2025 outlines that while confidence is high, challenges such as workforce readiness, data governance, and technology infrastructure remain critical hurdles. The report gathers insights from 4,100 respondents globally, including 400 from Australia across various sectors such as banking, energy, healthcare, and retail.
The data reveals that 86% of mid-market organisations in Australia are planning to bolster their budgets for generative AI projects by up to 50%, mirroring global enthusiasm at 87%. Furthermore, 77% intend to enhance AI training and fluency for employees, alongside 76% focusing on change management to align AI with both new and existing operational workflows.
Of note, 80% of respondents are concerned about losing competitive footing without swift AI adoption, and fast-tracking its implementation is a priority. In terms of progress, 51% of Australian organisations are at the proof-of-concept stage, surpassing the global figure of 44%.
Technology infrastructure and data security present further obstacles. 94% of Australian business and IT leaders are fast-tracking the modernisation of legacy systems, while 67% report that poor data quality and governance impede AI advancement. Addressing these issues, 85% have either set up or are in the process of implementing new data platforms and governance standards.
Carla Ramchand, Managing Director at Avanade Australia, commented on the pivotal role of AI in shaping mid-market organisations. "Mid-market organisations play an integral role in driving Australia's economic and productivity growth. As a company that is committed to supporting Australia's position as a global leader in AI, we want to extend our experience and expertise to help mid-market organisations in Australia realise the full potential of their people and businesses through technologies such as AI."
She further stated, "We know many mid-market organisations are at a crucial juncture of their transformation, and this is where AI can be a compelling differentiator – helping them create a significant competitive advantage, drive new revenue, build a future-ready workforce, and emerge as leaders in the global arena."
To aid these organisations, Avanade has launched seven new services, integrating Avanade's industry acumen with Microsoft's AI-powered platforms. These services include Accelerate Revenue Generation, AI-powered Migration and Modernisation, and Build and Modernise AI Apps, among others. They aim to provide scalable innovation tailored to mid-market needs.
The report underscores the continued emphasis on responsible AI practices, with 90% of Australian respondents developing guidelines for ethical AI usage. Additionally, protecting sensitive data remains a priority, highlighted by 92% of respondents who emphasise diligent investment in data security.
