Australian Businesses Increase Investment in AI, BSI Report Finds

Australian businesses are increasingly recognising the potential benefits of artificial intelligence (AI) and are planning to significantly boost their AI spending in the coming years. This effort aims to improve operations, drive growth, and maintain global competitiveness, according to BSI’s newly published International AI Maturity Model. The model reveals that 67 per cent of Australian businesses are investing more this year than last in AI to enhance operations or performance, ranking Australia as the second highest market globally for AI investment growth.

BSI’s model assesses various measures, including organisational confidence and readiness for AI adoption, to produce a single maturity score. The findings place Australia in the middle range of AI maturity with a score of 3.1, compared to India, which leads with a score of 4.6. This analysis, based on insights from 932 business leaders across nine countries and seven sectors, examines metrics such as investment, training, internal and external communications, and safety.

The Trust in AI report from BSI highlights that the UK and Japan are less mature in AI adoption, possibly influenced by differing policy directions or media narratives that focus on risks rather than opportunities. Meanwhile, China and India are leading across all measures, followed by the US and Australia.

Perception vs Reality in AI Adoption

The report identifies a gap between the perceived benefits of AI and the actual steps being taken by businesses. Three-quarters of Australian business leaders believe that failing to invest in AI will leave organisations at a competitive disadvantage. However, only 11 per cent think their businesses are not investing enough in AI tools, lower than the global average of 19 per cent.

Regarding AI training, 60 per cent of Australian leaders consider it crucial for ensuring safe, ethical, and effective AI use. Furthermore, 86 per cent believe it is important for businesses to train teams on AI tool utilisation to protect jobs.

AI engagement is notably high in Australia, with 86 per cent of business leaders stating that their companies encourage AI usage, and 88 per cent confident in their firms’ ability to harness AI benefits. It is also noteworthy that 94 per cent of leaders see it as important to inform employees about AI applications within organisations and future plans.

Challenges and Expectations

Despite Australia’s strong position in AI maturity within the Asia Pacific region, it still trails behind leaders such as the US, China, and India, and some European countries like France and the Netherlands. Additionally, Australia has one of the lowest expectations for businesses to play a role in building trust in AI across society, with only 82 per cent of Australian leaders seeing this as a business role, compared to higher percentages in China (97 per cent), India (96 per cent), and the US (89 per cent).

The talent gap remains a significant challenge, with only 31 per cent of Australian leaders aware of their companies offering AI-related training, compared to 49 per cent in India and 47 per cent in China. Only 38 per cent of Australian businesses have specific learning and development programs for AI, significantly less than in China (72 per cent) and India (55 per cent).

Leadership Insights

Charlene Loo, Managing Director at BSI Australia, commented, “BSI’s Global AI Maturity Model paints a positive but nuanced picture of a world excited about AI’s potential and its promise as a force for good. While Australian businesses are increasing their investment in AI, we continue to see some challenges relating to a lack of skilled talent. Investment in standards, training and assurance is key as AI becomes integral to the future of life and work.”

Susan Taylor Martin, CEO of BSI, added, “The Model shows diverging paths thus far on AI, its mass adoption and integration into work and life is a marathon, not a sprint. Success is not about being first, but about building trust. BSI is committed to shaping the guardrails for the safe and ethical use of AI, which will help businesses in Australia embrace AI to build a positive future for all.”

Strategic AI Implementation

About half of Australian businesses (50 per cent) now have an AI strategy, slightly higher than the global average of 44 per cent. Additionally, 88 per cent of Australian leaders recognise the importance of an ethical approach to AI. BSI has also introduced the first international AI management system standard (BS ISO/IEC 42001) to promote safe and responsible AI usage, although only 30 per cent of businesses are significantly moving towards implementing such policies.

BSI’s research also highlights areas where AI can be a transformative force, such as improving productivity and efficiency, including in supply chain management. Moreover, AI is expected to help manage sustainability goals and enhance cybersecurity processes, with a significant number of leaders (46 per cent) anticipating its use in cybersecurity.

Future Directions

The study concludes with several recommendations for businesses to help shape trust in AI within their ecosystems and broader society, emphasizing the need for long-term strategic planning, cross-border collaboration, moving from intention to action, and leading by example to ensure AI is a force for good. As AI continues to evolve, these measures will be critical in realizing its full potential in a responsible and beneficial manner.

BSI International AI Maturity Model 

Methodology 

We asked 932 business leaders (manager level or equivalent and above) in nine markets and seven sectors from business of different sizes 20 different questions in relation to AI across a range of themes such as investment and communication. The different responses across these themes were grouped together to form categories for an international AI Maturity Model, which averages out the responses from individuals in different markets, sectors and company size to provide a score between one and five.  

The scores give an indication of perceived maturity, by grouping, to represent the relevant data set and produce a picture of the actions respondents are already saying are in place versus their expectations and attitudes towards AI adoption in their businesses. 

Polling was conducted by Yonder Consulting in March 2024. The model was developed and produced by Burson. 

Last Updated on August 1, 2024 by Nick Ross