V2 Digital's State of AI in Australia: 'Embrace AI or be left behind'
Australian consultancy firm V2 Digital has released the inaugural edition of its State of AI in Australia report, shedding light into the maturity of AI and the road ahead for the much-hyped technology. Steve Tzortzidis, Director of Data & AI at V2 Digital, walks through the report’s key findings.
There’s a lot of buzz around AI and Gen AI. For many obvious reasons. Yet the State of AI in Australia report from V2 Digital has revealed that despite all the buzz, current practice still revolves around experimentation and little action. For some reason, most organisations haven’t left the gates.
The study surveyed more than 400 professionals at varying levels of seniority across industries and departments.
We’ve heard it before; AI will be a game-changer. It will distinguish the businesses that will still be around in 10, or even three years’ time from those that won’t last the distance. The benefits are clear and widely acknowledged, for the economy, businesses, and the workforce.
The report showed that more than four-fifths (86%) agree we should be embracing AI, and that AI drives efficiency, competitive advantage and customer engagement above all else.
Therefore, you’d think businesses would be chomping at the bit to roll out the technology and relevant training across the business, right? Wrong.
The survey found that although more than three-quarters (77%) believe AI is a business priority, organisations are still slow in adopting the technology, with only one in five (21%) respondents describing their organisation as mature in AI. This sluggish adoption rate is closely tied to a broader challenge: many organisations’ low maturity in using data to drive decisions.
A core hurdle companies must first overcome is developing more robust and mature data capabilities. This foundational step is crucial, as effective AI implementation relies heavily on an organisation's ability to collect, manage, and leverage data effectively, indicating that for many businesses, the path to AI maturity begins with addressing and improving their overall data infrastructure and analytics capabilities.
The barriers to AI implementation
So what’s the hold-up? Businesses face a plethora of barriers.
Businesses are still choking when it comes to actually taking AI action because they don’t know where to start. The data revealed that the number one barrier to implementation was too many competing priorities (43%), followed by a lack of skills (38%) and a lack of strategy (33%). The next barriers were ethical concerns (29%), regulation and compliance (26%), and fear of AI (24%).
This means that AI should be moved to the top of any business leader’s to-do list today. Map out the steps to reach AI maturity embedded by modern governance for velocity and as an enabler. Good governance is there to help us say ‘yes’ responsibly, not just ‘no’.
With people at the heart and ample investment to back it up. It is undoubtedly the single most effective initiative that will put you in the slip lane to success. Otherwise, make no mistake; there will be a dark horse that will take your place.
Government lags in maturity
The public sector isn’t keeping up when it comes to AI. Less than 1 in 10 (6%) of government respondents described their organisation as mature in AI (compared to 21% overall) and less than half (44%) stated AI is a business priority compared to more than three quarters (78%) in the private sector. Government respondents rated the level of AI skills of the people in their organisation just 2.75 out of 10 and they rated AI training a lowly 1.56 out of 10.
Despite scoring lower than other industries, an overwhelming majority (75%) of respondents in Government agree that AI should be embraced. The Public Sector needs to look in the mirror and shed some weight if it hopes to be a true competitor in the AI race. Only then will it have a chance on the track.
Building the right capabilities
A pedigree horse won't get far without a nurturing trainer and a jockey to steer the way. Similarly, our research showed that AI isn’t the end goal, nor can you simply slap it onto your tech stack and hope for the best. The true objective should be to supplement, enhance, and optimise existing processes, systems, and workflows with the help of AI.
It highlighted the need for businesses to roll out comprehensive training, allocate budgets accordingly, and prioritise AI adoption in strategic plans. This will equip the workforce with the skills needed to effectively leverage the technology and realise its benefits.
When asked about the current level of AI skills of the people in their organisation, the results were disappointing, with just 4.5 out of 10 being the most common answer. Of more concern was that current upskilling efforts are inadequate to fix this. When asked about their organisation’s AI training, Aussie professionals offered an average rating of just 3.17 out of 10.
Yet respondents rated the importance of up-skilling in AI for future career prospects at 7.5 out of 10. When asked to nominate all the ways their organisation plans to overcome their relevant AI adoption barriers, 42% said to start a training program and 33% said to recruit AI-skilled staff.
AI training isn’t just good for business, it’s also what employees desire. With the right support to effectively wield the tools, your people will be crucial to unleash your business’s potential.
Businesses should start small and scale quickly. Develop small specialist teams and ensure they are enabled with leadership support and clear parameters. Set measurable outcomes with the right data to prove effectiveness before expanding the application of AI across the business where it makes the most sense.
Although AI is still rapidly evolving, organisations that chart a course towards AI maturity today, will drive innovation, efficiency, and sustainable growth into the future. While there are roadblocks, the ways to overcome them are clear and doing so will ultimately help organisations onto the home straight.
About the author: Steve Tzortzidis is Director of Data & AI at V2 Digital, a private-equity backed digital and data consultancy firm with close to 100 staff.
