Australia’s AI adoption surges as spending set to reach USD $12.3bn
Australian organisations are rapidly accelerating their adoption of advanced AI and automation, marking a shift towards large-scale operational use and measurable business impact. Regional enterprise spending on AI is expected to almost double to USD $176 billion by 2028, with Australia forecast to contribute USD $12.3 billion. This positions the country and the wider Asia Pacific and Japan (APJ) region as significant contributors to the global AI sector.
AI landscape shifts
APJ is moving from being primarily an adopter to an exporter of AI innovation. The region is increasingly recognised for developing and scaling technologies that are being adopted internationally. In Australia, this momentum is supported by increased investment, industry and research collaboration, and a growing talent pool. The Australian Government has highlighted a flourishing AI ecosystem driven by these factors.
Investment expectations
Organisations across APJ are refocusing budgets towards AI, with over half reallocating funds from traditional investments. Around 29% of organisations in the region have already established dedicated AI investment plans. Business leaders expect concrete returns, with C-suite executives seeking between two and four times return on investment within 12 to 18 months of deployment. Australian government initiatives, such as the National AI Centre's guidance, are providing practical resources to help organisations adopt AI safely and responsibly.
Business applications
AI's role in business is widening beyond cost efficiencies and process automation. The emergence of AI agents, capable of reasoning and executing complex workflows autonomously, is enabling organisations to generate new revenue streams. Sectors such as financial services, healthcare, government, and manufacturing are embedding AI into their core operations. For example, Woodside Energy has leveraged AI to improve procurement efficiency, reclaiming significant hours previously spent on manual communications processing and reducing operational costs.
Operational orchestration
More than 70% of APJ organisations believe that orchestration-coordinating people, AI agents, and robotic processes-is crucial for achieving competitive advantage. Orchestration allows enterprises to bridge siloed systems, enabling end-to-end collaboration that delivers smarter decisions and measurable business results. Industries such as energy, utilities, and transport in Australia are beginning to use agentic automation to enhance grid reliability and manage large-scale operations.
Building trust
The success of agentic AI depends on public and stakeholder trust. Data governance, explainability, and compliance are seen as critical as the technology itself. Recent calls for stronger oversight in Australia follow previous automation failures which highlighted the dangers of adopting AI without sufficient transparency or accountability. Both government and private sectors are establishing frameworks to promote ethical and transparent AI deployment.
Workforce transformation
AI is reshaping the workplace, with agents handling decision-making tasks and automation performing routine operations. Human workers are transitioning to roles managing, monitoring, and improving intelligent systems. Initiatives such as the digital workforce implemented by Gold Coast Health have freed over 40,000 hours annually from administrative duties, allowing staff to focus more on direct patient care.
The demand for AI-related skills is rising sharply in Australia, with relevant job postings increasing from around 2,000 in 2010 to 23,000 in 2024. This trend is set to intensify, with estimates that by 2030, 70% of job requirements will change as a result of AI, underscoring the importance of ongoing upskilling and AI literacy among employees.
"We have moved beyond the hype cycle - this is the execution era for AI in Australia. Agentic AI is helping organisations move from pilots to production, turning AI into something they can trust and scale. By putting AI agents to work on complex, adaptive processes, business leaders are building the foundations for long-term transformation," said Peter Graves, Area Vice President, UiPath Australia and New Zealand.
