A new report by Economist Impact highlights the challenges faced by Australian businesses in the adoption and scalability of artificial intelligence (AI), even as the nation's overall AI expenditure is predicted to increase significantly in the next few years.
The study, commissioned by Databricks, surveyed 1,100 technical executives and technologists from 19 countries, including 100 respondents from Australia. It found that 92% of Australian enterprises currently use generative AI (GenAI) in some capacity, yet only 37% of these organisations deem their GenAI applications as production-ready. The hurdles encountered include governance, cost, skills, and quality, each cited by a significant portion of respondents.
Adam Beavis, Vice President and Country Manager at Databricks Australia, stated, "Australian organisations are increasingly focused on unlocking greater value from their data assets, and we're seeing this firsthand with the growing commitment to AI adoption. But it's clear many still face challenges in making these investments production-ready." He added, "At Databricks, we're committed to helping our customers fully harness their data and AI investments through a unified, tailored platform that drives meaningful results."
Australia is set to spend USD $8.3 billion on AI by 2027, according to IDC forecasts, which would place the country as the second-largest AI spender in the Asia-Pacific region. Despite the increased investment, the ability to achieve cohesive, cost-effective AI solutions continues to elude many organisations, impacting their ability to realise transformative benefits.
Senthil Ramani, Global Lead, Data and AI at Accenture, commented, "AI can lead to gains in productivity across the workforce. And for businesses just starting out on their AI journeys, it's a logical way to measure initial progress." He also mentioned, "However, organisations aiming to become the AI leaders of tomorrow will need to capitalise on the use of the technology to drive growth, enhance customer experience, manage risk and unleash enterprise knowledge."
Gereurd Roberts, Group Managing Director at Seven Digital, part of Australian media firm Seven West Media, emphasised the importance of cultivating a data-driven culture. "A data and AI culture helps all parts of the business understand that we prioritise data-driven decisions, and that's what will help us gain the insights that will improve performance," he said. Roberts highlighted training and upskilling teams in GenAI to internalise it as an ongoing process and product within the company.
Additional insights from the report indicate a strong outlook towards GenAI's role in future business operations. By 2027, 98% of Australian respondents expect GenAI adoption for both internal and external applications. However, only 11% are confident about securing sufficient AI expertise, and 47% recognise inadequacies in current data and AI governance frameworks.
Tamzin Booth, Editorial Director of Economist Impact, remarked, "From classic machine learning to generative AI, the business world's obsession with AI isn't letting up." She continued, "But our findings show that, for many organisations, the real value comes when the technology is unleashed on their own proprietary data to develop data intelligence."
The report underscores the potential for Australian businesses to harness AI driven by enterprise data, although it emphasises the need for overcoming multiple challenges, including fragmented data estates and effective governance, to fully leverage AI advancements.
