Seeking AI returns: Pathways for mid-market organisations in 2025
Australian mid-market organisations are demonstrating remarkable enthusiasm and optimism for adopting artificial intelligence (AI), seeking to benefit from the disruptive potential the technology can offer. Carla Ramchand, Managing Director at Avanade, outlines four factors mid-market organisations should consider in their AI journey.
2024 was critical for Australian organisations as they navigated the integration of artificial intelligence in the workplace. Fast forward to 2025 – AI is becoming an integral part of our office systems, and Australian mid-market organisations are keen to experiment, adopt and scale the technology.
In fact, recent research from Avanade reveals that mid-market organisations in Australia are now anticipating a fourfold return on their AI investments. Here’s why and how Australian businesses are setting themselves up for AI success in 2025:
Recognising the value of AI
Australian mid-market organisations are always looking for ways to drive more efficiency and innovation and get the most out of every deployment. This is why AI fits perfectly in their workplaces to boost employee productivity and thereby unlock a competitive advantage.
Our research shows that 80% of Australian mid-market respondents expressed concern over losing competitive advantage without rapid AI adoption, hence fast-tracking implementation is a top priority for them.
People: Training and Change Management
Organisations in this space are taking a pragmatic approach to AI adoption – recognising that success hinges on equipping their people with the knowledge and tools to work alongside AI.
AI fluency and training are essential across the entire organisation, not just siloed or limited to specific departments, roles or experience levels. This is particularly important as organisations plan to scale AI use across the business. Encouragingly, our research revealed that 77% of Australian respondents plan to boost investment in AI training and fluency for their employees while 76% are focusing on change management to ensure AI supports both new and existing ways of working.
Governance to Ensure Responsible AI
While enthusiasm for AI is high, scaling it across the business brings significant challenges – with data quality being one of the most critical obstacles that businesses face.
In fact, 67% of Australian respondents cite poor data quality and governance inhibit AI progress. AI systems rely heavily on vast amounts of data and the quality of this data directly influences the outcomes. Ensuring that data is accurate, relevant, and up to date is a continuous challenge that organisations must address.
Equally important is the governance of that data. As AI becomes more embedded in business operations, robust governance frameworks are essential to ensure ethical and responsible use. This includes establishing clear guidelines for data usage, privacy, and security. Organisations must also be prepared to navigate the regulatory landscape, which is evolving alongside AI technologies.
It's been great to see mid-market organisations recognise this, with 85% of respondents implementing or have implemented new data platforms and governance standards. Furthermore, 90% of them have developed or are developing responsible AI guidelines to inform data and AI practices.
Leading with Trust
At the core of all these considerations lies one fundamental truth: Trust is the cornerstone of successful AI implementation.
To bring people along on the AI journey, organisations must foster a culture of transparency and accountability, where employees and stakeholders have confidence in the AI systems being deployed. This requires clear communication about both the benefits and limitations of AI, as well as ongoing efforts to address any ethical concerns.
Conclusion
Australian mid-market firms are essential to the country’s economic and productivity growth. It will be exciting to see how this segment continues to leverage AI as a compelling differentiator and creates a competitive advantage against bigger players.
