There are high expectations for Australian companies to adopt artificial intelligence to improve productivity and streamline operations. While technology spending, especially on cybersecurity, has increased, the practical use of AI remains limited. A Reserve Bank of Australia study found that nearly 40% of firms use only basic forms of AI, mostly relying on off-the-shelf tools such as Microsoft Copilot and ChatGPT that perform minor tasks like email summarisation or basic research.
Real-world use of AI across the corporate sector in Australia is still in its early stages. Although technology budgets are growing and AI is being discussed in boardrooms, actual implementation usually stops at simple digital assistants. Rather than implementing AI through centralised strategies, many businesses let staff choose how or whether to use it. This approach differs significantly from countries where automation is more deeply integrated into everyday workflows.
Despite a threefold increase in AI infrastructure spending over two years, reaching $1.4 billion in June, most companies have yet to realise meaningful benefits. Around half the firms surveyed expect a moderate reduction in staff numbers over the next three to five years due to AI. However, they acknowledge that significant changes will take time as successful adoption depends on integrating the technology into operations and training employees effectively.
The slow pace of AI adoption could lead to bigger problems. As countries invest trillions in AI equipment and systems, some experts warn that low usage could result in overinvestment or even a technology bubble. Still, many companies remain hopeful that AI will deliver long-term advantages by automating routine tasks in areas like finance and administration. At the same time, demand is projected to rise for professionals with AI skills such as data engineering and customer experience design.
