Lenovo Infrastructure Solutions Group has released its latest report, the CIO Playbook 2024 - Its all about Smarter AI, which sheds light on the adoption of AI in Australia and New Zealand (ANZ). The report highlights areas such as the confidence among CIOs in AI, their top priorities and the emerging trends in the AI platforms market in ANZ.
Chief Information Officers (CIOs) in ANZ are highly optimistic about the benefits of AI, with 83% believing it will offer a competitive edge for their businesses. Their main priorities include more efficiently managing uncertain economic conditions and enhancing customer experience using advanced technologies like GenAI.
The AI platforms market in ANZ is growing at an approximate 46% Compound Annual Growth Rate (CAGR), with sectors such as banking and government leading in expenditure.
The Lenovo study, based on an IDC report which surveyed over 900 CIOs, including more than 130 in ANZ, also unveiled that organisations in Asia-Pacific are set to bump up their AI spending by 45% in 2024 compared to the previous year.
There are, however, differences noted between business leaders and CIOs on AI technologies. Business leaders want to prioritise GenAI to improve customer experience and drive results, whereas CIOs exhibit cautious optimism. They rank GenAI as the 4th technology priority, focusing on AI technologies that address security, infrastructure and talent considerations.
"The AI Playbook echoes what we have been hearing from the customers. CIOs in ANZ are most confident about AI, with 83% expressing certainty that it will create a competitive advantage, and 38% of them consider it to be a game changer for their organisations," remarked Kumar Mitra, MD CAP & ANZ, Lenovo ISG.
While ANZ and Japan lag in GenAI investments made in 2024, behind ASEAN+, India and Korea, 79% of CIOs in Japan and 77% in ANZ are planning to invest in GenAI. Additionally, Australian CIOs foresee Retail and customer experience (40%) and Real-time analytics (38%) experience having the most significant impact from AI.
The top technology challenge for AI is GenAI's reliance on extensive datasets, a resource most organisations lack. In terms of business challenges, job security and lack of requisite AI skills top the concerns for IT employees in mature markets.
"Recruiters leverage AI deployment to attract top talent, as individuals increasingly seek opportunities with companies at the forefront of AI innovation," said Vlad Rozanovich, SVP WW Sales, Lenovo ISG.
Lastly, most of the available operational AI jobs, particularly in DataOps, SecOps, and DevOps, remain accessible and relevant, indicating key entry points as businesses continue their AI journey. However, 43% of ANZ and 45% of AP enterprises struggle to fill AI-related positions, prompting them to pivot towards internal solutions, underlining the need to upskill current members of staff.