Artificial intelligence (AI) is poised for rapid expansion in Australia, according to a recent study conducted by global financial services technology leader FIS. The research indicates that Australian businesses are gearing up for significant investments in AI and generative AI over the next year, reflecting a broader trend of corporations embracing new technologies during times of uncertainty.
The second edition of FIS' Global Innovation Report engaged with c-suite and senior executives from a wide spectrum of industries, including financial services, non-financial businesses, and technology providers. These executives were surveyed on their key areas of financial investment over the next 12 months.
In Australia, where nearly two-thirds (63%) of business leaders expressed concern about financial risk, technology and system innovation emerged as a top priority for risk mitigation in the coming year. An impressive 46% and 50% of firms in Australia reported already using AI and generative AI, respectively.
Nick Aronson, VP Capital Markets, APAC at FIS, commented on the findings, highlighting the role of AI in the digital transformation of the financial sector. "While ChatGPT has recently been making headlines, AI and machine learning tools have long been playing a significant role in digital transformation within the financial sector by making far better use of data and enabling faster, more reliable, and more consistent decision making," he noted. Aronson also pointed out that Australians have historically been early adopters of technology, which aligns with the high adoption rates of AI.
Generative AI, a cutting-edge technology, was a focal point of the report. Aronson acknowledged the transformative potential of generative AI but also noted the concerns it raises in various industries. He highlighted the inevitability of increased regulation in this space and emphasized the ongoing importance of human judgment alongside AI tools.
Key findings from the report include:
- 63% of Australian business leaders identified financial risk as their top concern.
- 94% of Australian executives believe innovation is crucial for mitigating risk.
- Technology and system innovation was the top priority for 59% of leaders to mitigate risk, followed by customer experience innovation (56%).
- 50% of Australian firms are already using Generative AI, with 71% of them planning to increase their investment in the coming year.
Additionally, the report revealed a strong appetite for cloud computing among Australian leaders, with an expected adoption rate of 87% within the next 12 months. Generative AI and AI are also expected to see high adoption rates, both at 86%.
FIS' Global Innovation Report, which surveyed over 2,000 business leaders worldwide, provides insights into executives' attitudes towards risk management, innovation, and technology adoption. The Australian data, based on a sample of 197 executives, reflects the views of leaders from various sectors, including financial institutions, fintechs, retailers, and technology providers.
In conclusion, the FIS report sheds light on Australia's growing embrace of AI and generative AI, with business leaders recognizing these technologies as key tools in navigating financial risks and driving innovation in an increasingly competitive global landscape