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A new report from Cisco has found that organisations across Asia-Pacific, including Australia, are struggling to prepare for and implement Ai technologies. The Cisco 2024 Ai Readiness Index revealed that only 4 per cent of companies in Australia are fully ready to leverage Ai, down from 5 per cent last year. The decline points to significant challenges in deploying and integrating Ai, despite increased investment and growing awareness of its impact on business operations.
The Index, based on a survey of 3,660 senior business leaders across 14 APJC markets, measured Ai readiness across six key areas: strategy, infrastructure, data, governance, talent, and culture. These findings underscore the ongoing obstacles for companies aiming to harness Ai’s benefits effectively.
Rising Urgency to Implement Ai
According to the report, there is a mounting urgency among businesses in Australia to adopt Ai, driven by increased demand from senior leadership. Over 90 per cent of surveyed companies report heightened pressure to deploy Ai technologies, with CEOs and other leaders actively advocating for Ai integration.
Dave West, President of Asia-Pacific, Japan, and Greater China at Cisco, explained, “As companies accelerate their Ai journeys, it’s crucial they adopt a comprehensive approach to implementation. This year’s Ai Readiness Index shows that a modern digital infrastructure, capable of meeting evolving power and network latency requirements, is necessary to fully leverage Ai. Without this, connecting ambition to readiness remains a challenge.”
To meet this growing demand, many organisations are increasing their investment in Ai. Approximately 38 per cent of companies reported allocating between 10 and 30 per cent of their IT budgets to Ai initiatives, primarily targeting cybersecurity, IT infrastructure, and data management.
Key Findings from the Ai Readiness Index
The Cisco 2024 Ai Readiness Index highlighted several trends and challenges:
- Decline in Ai Readiness Across Key Pillars: Infrastructure emerged as a significant barrier, with only 13 per cent of organisations reporting adequate GPUs for current and future Ai needs. Additionally, only 17 per cent of companies have sufficient security measures for Ai models, including end-to-end encryption, continuous monitoring, and rapid threat response.
- Significant Investment with Limited Gains: Although companies have prioritised Ai spending, many have found the returns on investment lower than expected. While 32 per cent of businesses report advanced Ai deployment in cybersecurity, 31 per cent in IT infrastructure, and 29 per cent in data analysis, roughly half of the respondents indicated that Ai investments have not met their expectations.
- Growing Pressure to Achieve Ai Success: Almost half of the companies reported that Ai initiatives are driven by the CEO or top leadership. Notably, one-fifth of organisations plan to allocate over 40 per cent of their IT budgets to Ai projects in the next few years, a sharp increase from current levels.
Many businesses in Australia are also focusing on enhancing scalability, flexibility, and manageability within their IT infrastructure to improve overall Ai readiness. About 54 per cent of respondents cited these as top priorities, recognising the need to address foundational gaps to advance Ai initiatives.
Talent Gaps Remain a Major Challenge
The Ai Readiness Index further identified a widespread talent gap across the region, with companies citing skilled workforce shortages as a top challenge in areas such as infrastructure, data management, and governance. This gap could hinder the ability of organisations to meet their Ai goals.
Anupam Trehan, VP of People and Communities APJC at Cisco, commented on the talent issue, “As the race to adopt Ai picks up, talent will be a key differentiator for companies. There is already a shortage of skilled professionals across various aspects of Ai, and companies will need to invest in their existing talent pool to meet the growing demand. It’s also essential that private and public sectors, educational institutions, and governments collaborate to develop local talent, so the entire ecosystem can benefit from the potential that Ai offers.”
To address this gap, Cisco and other industry leaders are emphasising the importance of upskilling and partnerships with educational institutions to build a talent pipeline that can support Ai-driven growth.
