Australian businesses adopting AI at a rapid pace

Australian businesses adopted AI an average of once every three minutes over the past year, new research released by Amazon Web Services suggests.

A survey conducted on behalf of the company by Strand Partners found that 50% of Australian businesses are now regularly using AI, representing a year-on-year growth rate of 16%. Among AI adopters, 95% are reporting an average increase in revenue of 34%, with 86% having experienced productivity gains and 94% expecting to achieve an average of 38% in cost savings.

But there are significant disparities in the rate of AI maturity depending on business size, with 81% of Australian startups using AI and 42% building entirely new products with the technology, compared to just 61% and 18% respectively among large enterprises. In addition, only 22% of large Australian enterprises have a comprehensive AI strategy in place.

The main barriers to AI adoption include a lack of skilled personnel, which was selected as the top reason by 39% of Australian respondents, as well as a lack of funding. Among startups, 65% said access to venture capital is critical to creating an environment for growth.

In order to unlock the full potential of AI and avoid the emergence of a two-tier economy, the report recommends Australia invest in and build industry-specific skills programs to help drive AI-led innovation and growth. It will also be important to establish a clear picture of Australia’s pro-growth regulation that is predictable and innovation-friendly, and to accelerate digital transformation in the public sector to encourage private sector adoption, the report adds.

AWS Head of Professional Services Michelle Hardie said the report’s findings should put businesses and governments on notice.

“While it’s encouraging to see a growing number of businesses in Australia innovate with AI and realise revenue, productivity, and cost benefits, our research has uncovered that barriers such as lack of skills and regulatory uncertainty remain, impacting the ability for larger enterprises to deepen their use of AI,” she said. “To accelerate Australia’s competitive edge on the global AI stage, it is essential that governments and industry take steps to address these barriers to unlock Australia’s full AI potential.”

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