Australian organisations rank fourth in an assessment of the use and implementation of generative AI by businesses across 16 countries. The survey, conducted by data analytics firm SAS, found that 63% of Australian businesses are currently using generative AI.
The results, based on responses from 1,600 global AI and data analytics decision-makers, found that Australia’s use of generative AI is ahead of the global average and that Australia is leading the way when it comes to implementing generative AI-related policies.
Which countries are fully implementing generative AI?
63% of Australian organisations say they are using generative AI. According to SAS, Australian companies lag behind China (83%), the UK (70%) and the US (65%), but are ahead of the global average, with 54% of companies worldwide using generative AI.
Companies in the APAC region as a whole, led by China, are among the most voracious adopters of AI in the world. While North America leads the way in overall AI usage (70%), APAC companies are not far behind, with a total of 63% using it at some level within their organizations.
Usage doesn’t mean they’re fully implementing the tool. Only 8% of Australian companies surveyed by SAS have fully implemented generative AI, below the global average of 11%. Many local companies are still experimenting or piloting generative AI use cases.
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In China, the situation is similar: despite high usage, only 19% of organizations have fully implemented generative AI. SAS found that the United States leads the pack in terms of full implementation, with 24% of organizations having fully implemented the technology.
Australian organisations are happy with the implementation of generative AI
Australian companies are seeing success when implementing AI. For example:
- 91% reported improved employee experience and satisfaction, compared to 89% globally.
- 85% said they were saving on operating costs, compared to 82% globally.
- 89% said AI has improved customer retention, compared to 82% globally.
Craig Jennings, SAS vice president and ANZ managing director, said he was seeing local organisations improve employee satisfaction and operational efficiency while freeing up resources to “improve innovation and customer experiences”.
Data security is the main concern for generative AI in Australia
Seventy-two percent of Australian respondents cite data security as their top concern when it comes to generative AI. According to SAS, this is followed by:
- Data privacy (64%).
- Ethical implications (64%).
- Excessive reliance on generative AI (59%).
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Australia is relatively more prepared to implement regulations that help alleviate these concerns. SAS found that nearly three-quarters (73%) of respondents from Australian organizations said they are fully or moderately prepared for generative AI regulations.
Challenges in governance and monitoring
Australian decision-makers said technological limitations (32%), lack of transparency and accountability (28%) and lack of clear guidelines or standards (21%) were the biggest challenges to implementing effective governance and monitoring of generative AI.
Skills gaps are not as severe as in other regions
Despite the shortage of generative AI-related skills, respondents in Asia Pacific, including Australians, actually have less difficulty finding skills (49%) than other regions. Europe has the most difficulty (56%), while only 44% of North American companies have a problem in this area.
Australia is well prepared for the growth of generative AI
Australian businesses have a number of core ingredients in place to support the strategic and effective implementation of generative AI, even if they have been slower than other countries in fully implementing these tools. These elements include:
- A solid understanding of generative AI technology.
- The widespread implementation of generative AI usage policies.
- Specific budgets for new generative AI initiatives.
Furthermore, the report found that:
- 87% of Australian respondents reported having a good or moderate personal understanding of AI, compared to 82% of respondents globally.
- More Australian companies (72%) have implemented generative AI usage policies compared to North America (63%), South-West and Eastern Europe (60%) and Northern Europe (58%).
According to SAS, almost all (94%) of Australian organisations planning to invest in generative AI in the next financial year have secured a dedicated budget for the technology. This is similar to the APAC region as a whole (94%), but higher than Northern Europe (91%), South-West and Eastern Europe (91%) and North America (89%).
SAS's Jennings said that overall, industries as diverse as financial services, life sciences and retail in Australia were exceeding their expectations when it came to maturity in understanding and adopting generative AI, which bodes well for the future of the technology in the region.
