Aussie businesses lag in AI adoption compared to APAC peers

A new research report has revealed that the adoption of Artificial Intelligence (AI) by Australian businesses is significantly behind that of their Asia-Pacific counterparts. The 2024 APAC Workforce Insights report by PERSOLKELLY Australia shone light on the attitudes of business leaders on AI implementation, disclosing that one third (33%) of Australian businesses either aren't using AI or have no plans to do so.

Moreover, this research suggests a potential lack of awareness among business leaders about the extent of AI and machine learning already installed in everyday software and apps like Google Search. In comparison to Australia, New Zealand is a frontrunner in current workplace AI usage, with an impressive 82% uptake, while the Asia Pacific average sits at 43%. Australia lags behind with only 35% of businesses utilising AI, making it one of the markets with the lowest AI usage.

Interestingly, Australian employers seem to have an optimistic view of AI and its potential impact on jobs. The report found that 41% of Australian employers do not predict significant job displacement due to AI, a stark contrast to the gloomier regional average of 16%. This optimistic outlook has led to a subsequent decrease in interest for other plans to manage it. On the other side of the spectrum, only 8% of business leaders in India share the same optimism, thus making India more supportive of managing job displacement than the regional average. Similar trends are observed in Vietnam, China and New Zealand, all expecting higher job displacement and showing greater interest in plans to manage it.

Another major insight drawn from the study is the hesitation among Australian businesses to adopt formal AI policies in the workplace. Just 18% of organisations that have embraced AI have developed policies around it within six months of its implementation. Quite alarmingly, over one-third (38%) of these businesses admit they have no plans at all to establish formal policies. In contrast, 21% of business leaders said it would take up to a year to establish AI policies, against the higher regional average of 29%.

However, on a brighter note, Australian employers are eager to upskill their employees in AI related roles. Over half (52%) of business leaders are prioritising the implementation of upskilling programmes, with 44% maintaining transparent communication about AI’s potential impact to job roles. The critical skills that Aussie employees must acquire in order to navigate in the AI-workplace include critical thinking (45%), digital literacy (36%), creativity (36%) and adaptability (35%). And only 8% of organisations are considering the option of hiring individuals with necessary AI skills to fill the existing skill gap.

Kurt Gillam, Executive General Manager at PERSOLKELLY Australia highlighted, "While Australia boasts a robust business environment, its slower uptake of AI practices and policies in the workplace could hinder its long-term competitiveness globally. In order to stay ahead of the curve and continue to be a leading nation when it comes to business large and small, Australian businesses need to embrace AI and seize the opportunities and benefits this technology presents.”