FOMO driving AI investment among Australian IT leaders

New research conducted by Opinium on behalf of ABBYY has unveiled significant insights into the concerns and priorities of IT leaders with respect to artificial intelligence (AI) investment over the next year.

The study, focusing on Australia, identified the fear of missing out (FOMO) as a critical driver of AI adoption, while trust in AI tools remains notably high among respondents.

According to the ABBYY State of Intelligent Automation Report: AI Trust Barometer, 73% of Australian IT leaders acknowledged a fear of their companies falling behind if they do not implement AI technologies. Despite this prevailing concern, the report indicates that Australian firms are investing an average of AUD $1.09 million in AI, which is below the global average by approximately AUD $212,719. This discrepancy may be related to concerns about the costs associated with implementing AI, as highlighted by 39% of the respondents.

The report disclosed that nearly all (97%) of the Australian IT decision-makers surveyed intend to amplify their AI investments within the next 12 months, with 90% projecting increases between 5% and 50%. However, Gartner’s forecast suggests that by 2025, expansion in 90% of enterprise generative AI deployments will potentially decelerate as expenses outweigh the perceived value.

Customer pressure is another influential factor driving AI investment in Australia, cited by 68% of respondents, the highest globally compared to 55% worldwide. In addition, addressing employee burnout is a significant motivator, with 42% of Australian leaders identifying it as a reason for AI adoption, compared to a global average of 32%.

Despite the substantial interest in AI, several concerns remain. Implementation costs are the foremost worry for 39% of Australian IT leaders, followed by a lack of talent or expertise (37%), technical complexity (35%), and potential staff misuse (34%). These issues underscore the need for improved AI proficiency and suggest the importance of upskilling and training to handle the complexities associated with AI.

Trust in AI remains robust, with 85% of Australian respondents expressing confidence in the general benefits of AI tools for their businesses. Purpose-built AI and small language models are particularly trusted, with a significant 95% of Australian respondents endorsing these technologies compared to 89% for generative AI. Additionally, over half (52%) of those surveyed reported using purpose-built AI tools, such as intelligent document processing (IDP).

Maxime Vermeir, Senior Director of AI Strategy at ABBYY, commented on the trend, stating, “It’s no surprise to me that organizations have more trust in small language models due to the tendency of large language models to hallucinate and provide inaccurate and possibly harmful outcomes. We’re seeing more business leaders moving to SLMs to better address their specific business needs, enabling more trustworthy results.”

The survey also examined ethical considerations and regulatory compliance in AI usage. A majority (90%) of Australian respondents are confident that their companies adhere to government regulations regarding AI. Trustworthiness in AI policies is affirmed by 59% of respondents, with 49% seeking guidance from consultants or non-profit organisations, the highest percentage globally. Furthermore, 57% would feel more assured if their company had a responsible AI policy in place, though only 30% indicated definite plans to establish such policies soon.

The survey, encompassing 1,200 IT decision-makers from the UK, US, France, Germany, Australia, and Singapore, provides a comparative view of AI trust and adoption. Australian businesses, in general, exhibit a high degree of trust in purpose-built AI and small language models, with 95% of respondents displaying trust in these technologies compared to 87% in Singapore.