Australian firms struggle to transition GenAI pilots to full use

Research conducted by Informatica has surfaced significant challenges faced by Australian organisations in transitioning Generative AI (GenAI) pilots into full production, even as optimism for its potential remains prevalent.

The CDO Insights 2025 survey, carried out globally, found that fewer than half of GenAI pilots have successfully been deployed into production within 70% of the Australian organisations surveyed. Consequently, 53% of these companies have either slowed or completely stopped their GenAI initiatives in the past year, marking the highest rate worldwide. Despite these obstacles, 55% of Australian businesses have already begun integrating GenAI into their operations, fuelling continuing investment in data strategies.

The study further reveals that a vast majority, 92%, of Australian data leaders intend to increase their GenAI investments by 2025. However, a significant 98% encountered considerable difficulties in proving the business value of their GenAI projects, primarily due to data readiness issues such as data quality and responsible use.

Alex Newman, Country Manager in Australia and New Zealand for Informatica, noted, "Our latest findings highlight a key challenge for Australian businesses: their enthusiasm for GenAI investments is outstripping their readiness to support these tools effectively."

Newman went on to stress the importance of addressing data issues to ensure success. "Despite 96% of Australian data leaders facing pressure from the C-Suite to deliver quick return on investments from GenAI, many are moving forward without addressing critical issues such as data reliability, flagged by 80% organisations as a major challenge, jeopardising both immediate goals and long-term success."

Australian organisations are confronting several specific data-related challenges in GenAI adoption. Among these, data quality (57%), ethical usage of AI (55%), and data privacy and protection (45%) were prevalent concerns. Furthermore, when asked about difficulties in proving business value through GenAI, leaders pointed to reliability of results (57%), cybersecurity and privacy compliance (49%), and responsible AI use (47%).

The regulatory landscape also poses a significant barrier, with 92% of companies noting it as an impediment to their AI efforts. An additional 89% of data leaders reported a need for moderate to significant employee training to use AI responsibly, estimating over 12 months would be required to fully prepare the workforce.

Despite these hurdles, a sense of optimism persists globally among data leaders regarding the transformative power GenAI can wield across various industries.

In Australia, operational efficiency, enhancing employee and customer experiences, and fostering increased collaboration among business units are prioritised targets for GenAI implementation. Concurrently, investments in areas such as data governance, data privacy and security, and adapting to evolving regulations are anticipated to escalate alongside GenAI investments.