Australian organisations still struggle to scale AI despite rising interest
A new report from global technology consultancy Logicalis has found that the vast majority of Australian organisations are still struggling to scale AI despite almost universally growing interest.
As part of its annual Global CIO Report for 2026, Logicalis canvassed more than 550 local information chiefs, with 95 percent of those surveyed reporting an increased appetite at their organisations for AI adoption over the past twelve months.
However, barely one in five or just 21 percent expressed strong confidence that their organisation could scale AI beyond pilots or proof-of-concepts – compared to over a third at the global level – with a lack of internal technical skills among the major roadblocks.
Regulatory & security compliance, organisational culture, and data challenges were also cited by the respondents at rates of above or close to 90 percent as slowing their AI adoption or limiting its impact, while a little over a third felt their organisation’s AI strategy was fully aligned with its broader business plan despite strong investment momentum and appeal.
“Australian organisations have moved quickly from exploring AI to making it a core priority,” said Logicalis’ A/NZ general manager Lisa Fortey. “The challenge now is converting that ambition into reliable, measurable outcomes. But the findings show that enthusiasm alone isn’t enough; for CIOs, this is becoming a leadership and organisational design challenge as much as a technology one.”
As for motivation, close to a half of the CIOs said that managing risk and compliance was itself driving the increased interest in AI, with 44 percent pointing to innovation demands and a third believing there was a solid business case for return on investment. In contrast, many aren’t fully confident that their AI investments have delivered measurable business value to date.
The survey results also hint at some frustration among local CIOs over the pressure being created by the pace of AI advancement, with almost half responsible as the final decision-maker for implementation but only 17 percent stating full confidence that their organisation had the necessary guidance, governance, and practical frameworks in place to effectively manage initiatives.
Despite the technology’s enormous potential and their presumed professional interests, this growing burden is perhaps best highlighted by one of the survey’s most striking findings, with more than half of the CIOs saying that they wished artificial intelligence had never been invented. Close to a third also believed adoption in their organisations was already moving too fast.
“While this is not a rejection of AI’s potential, it reflects the unprecedented challenge technology leaders face in governing its rapid adoption,” Fortey commented. “The pace of AI innovation has outstripped many organisations’ ability to implement the strategy, governance, and data frameworks needed to manage it responsibly, yet establishing these foundations is no longer optional.”
She continued; “CIOs are often left carrying the responsibility to accelerate innovation while managing business value, security, compliance, and sustainability, but moving from experimentation to execution first requires organisations to agree on what success looks like, establish clear ownership, and build governance into their initiatives from the beginning.”
