Australia leads in AI adoption, Aussie biz leaders optimistic

Australia is emerging as a leader in adopting artificial intelligence (AI) within the business sector, with a significant number of companies and employees integrating technology to enhance innovation and productivity. A recent study by BSI, a global standards and business improvement company, underscores these trends and highlights both AI's transformative potential and the challenges it presents concerning governance and transparency.

BSI's report, titled "Evolving Together: Flourishing in the AI Workforce," surveyed 932 business leaders worldwide, including in Australia, to examine the anticipated impact of AI on work. According to the report, 88% of Australian business leaders expect AI to affect some office jobs, with 76% predicting that AI systems will eventually replace these roles. Despite this outlook, there is a strong sense of optimism regarding AI's benefits. The report indicates that 75% of Australians believe companies will find themselves at a competitive disadvantage if they do not invest in AI.

The report highlights several key areas. Training and trust are crucial, as 82% of Australians recognise that a lack of proper AI training could hinder career progression. Additionally, 79% of leaders feel that more efforts are needed to build trust in AI among employees. In terms of governance, 20% of Australian businesses already have a Chief AI Officer, placing the country second globally in this regard. Furthermore, 18% plan to recruit Chief AI Officers within the next two years, reflecting a proactive stance towards AI governance and strategy.

Over half of Australians (53%) anticipate that AI will improve productivity and efficiency within the next five years. There is also strong optimism (84%) that AI applications will pave the way for specialist roles in AI transformation, training, or innovation. Moreover, 27% expect AI to reduce reliance on external contractors.

BSI's research proposes four strategic areas that businesses can focus on to navigate the complexities of AI adoption. These include using AI to enhance performance management by integrating it with human insights, leveraging AI to improve diversity in recruitment, redesigning job roles to boost flexibility and productivity, and committing to continuous AI training to engage employees effectively in the AI integration process.

Kate Field, Global Head of Human and Social Sustainability at BSI, highlighted the transformative potential of AI, stating, "The world of work is changing, shaped by demographic shifts bringing growing age diversity alongside new attitudes and expectations of when, how and where work is done. AI-powered technologies have the power to transform the way we work across all sectors and markets, and we can expect them to shape how companies recruit staff, manage performance, train employees and more." Field emphasised the need to retain human creativity and critical thinking alongside AI to foster greater innovation.

The report also compared Australian perspectives with those from other countries. Globally, nearly nine in ten business leaders expect AI to change some office jobs, with over three-quarters expecting some roles to be replaced. 65% of global respondents believe that innovation is more important than protecting existing jobs, rising to 70% among Australian respondents.

Training remains a focal point. In Australia, 82% fear that insufficient AI skills may negatively impact career advancement, compared to the global figure of 74%. Moreover, 79% of Australian leaders believe their businesses should do more to build trust in AI, closely aligning with global trends.

The role of formal AI strategies and Chief AI Officers appears to be growing. Currently, only 31% of Australian businesses have AI deployment as a board-level priority, but 20% have appointed or plan to appoint a Chief AI Officer, reflecting a forward-thinking approach in AI governance.

The BSI report provides a comprehensive view of how Australian businesses are navigating the rise of AI, highlighting both the opportunities and challenges of this transformative technology. As AI continues to shape the workforce, companies focus on areas such as governance, training, and trust to ensure successful integration while maintaining a competitive edge in the global market.