Report highlights obstacles to AI adoption in Australia

Australian digital and data consultancy V2 Digital has released its inaugural State of AI in Australia report, shedding light on artificial intelligence (AI) adoption across various industries and departments. The report identifies major barriers to implementation, suggests ways businesses can overcome these challenges, and discusses the opportunities AI presents in driving efficiency and competitive advantage.

The survey included responses from more than 400 professionals at different organisational levels. It found that while AI is a business priority for many, organisations are still in the early stages of AI adoption. The research highlighted the necessity for businesses to introduce comprehensive training, allocate sufficient budgets, and incorporate AI adoption into their strategic plans.

Commentary from industry leaders in 12 prominent technology organisations, such as QBE Insurance, Boston Consulting Group, TechDiversity Foundation, TikTok, and UNSW, provided practical insights. These leaders drew from their own experiences to discuss the issues uncovered by the research.

Steve Tzortzidis, Director of Data and AI at V2 Digital and author of the report, emphasised the rapid evolution of AI and the report’s role in gauging the current state of AI implementation. "We set out to benchmark how we’re currently tracking on this AI evolution and better understand organisational pain points," said Tzortzidis. He added that organisations need a certain level of data maturity alongside proper foundations and governance to effectively utilise AI. Despite the widespread recognition of AI's benefits, only 21% of respondents considered their organisations mature in AI.

Dr Pete Stanski, Chief Technology Officer at V2 Digital and former CTO at Microsoft, pointed out the primary barriers businesses face. "Too many competing priorities was the number one barrier (43%), followed by lack of skills (38%) and lack of strategy (33%). Additionally, 72% of respondents have personally experienced AI bias," stated Stanski. He mentioned that the results indicate a prevalent problem that businesses need to address when using AI technologies.

The research also indicated a critical need for investment in proper teams and upskilling initiatives. "Australians widely accept that we live in an AI age and it is here to stay," explained Tzortzidis. Professionals across various industries rated the importance of AI upskilling for future career prospects at 7.5 out of 10. Younger respondents, aged 18 to 44, rated this need higher, with a score of 7.64 out of 10. The IT industry particularly valued AI skills for future opportunities, scoring 7.65 out of 10.

However, current AI skill levels within organisations were deemed inadequate, with an average rating of 4.5 out of 10. Respondents rated their organisation's AI training at an average of only 3.17 out of 10. Encouragingly, the highest-rated action to overcome AI adoption barriers was starting a training program (42%), followed by allocating budget (40%) and recruiting AI-skilled staff (33%).

The report revealed a noticeable lag in AI adoption within the public sector. Government respondents described their organisation's AI maturity at a mere 6%, compared to 21% overall. They also rated the AI skills within their workforce at just 2.75 out of 10 and AI training at 1.56 out of 10. Despite this, 75% of Government respondents agreed that AI should be embraced.

Across the board, AI is seen as a critical business driver. Efficiency, competitive advantage, and customer engagement were cited as the main incentives for AI adoption. Organisations deploying AI were involved in more than 25 different use cases, confirming the technology's widespread application in the workforce. Notably, only 5.49% of respondents were unsure of AI use cases.

"By leveraging this report and support from leading AI technology consultants, organisations can chart a course towards AI maturity, driving innovation, efficiency, and sustainable growth in 2024 and beyond throughout Australia," concluded Tzortzidis.