Shifting gears: AI moves from concept to strategy for Aussie businesses

Over a quarter of Australian businesses that have taken up artificial intelligence have gone all in on the technology and have changed their processes to support it, new analysis has found.

According to Melbourne-headquartered consultancy Mantel Group’s State of Data & AI report for 2024, 27 per cent of organisations investing in AI have changed their business model to support the technology.

“True AI-driven business transformation still has a long way to go, however, this cohort has a healthy head start,” Mantel Group data partner Emma Bromet said. “There is a burning platform for leaders to establish a coherent plan about how AI will be used in their enterprises to remain competitive.”

The report, which looked at more than 20 large Australian organisations with AI/machine learning (ML) projects, also found 10 per cent of respondents said they have wide-scale adoption of AI/ML, 43 per cent have limited adoption in the technology and another 43 per cent are mostly piloting it.

Additionally, 73 per cent of surveyed organisations said they have company-wide training in AI/ML in place, while 27 per cent said they haven’t brought in any skilling programs for the technology area.

“A strategic approach to embedding AI requires much more than just developing a skilled workforce. Strong comprehensive upskilling programs need to be paired with an organisation-wide shift towards a data and AI centric culture and cultivating new practices such as AI product management,” Bromet added.

As for why organisations are taking on AI, 76 per cent of respondents said it is due to productivity gains, making it the most compelling reason. Following this was a tie between better customer experiences and improved strategic decision-making at 71 per cent each.

“These results indicate data and AI leaders have their medium-term focus on implementing everyday AI within internal operations, while taking small steps in external customer-facing AI implementation,” the report claimed. “Game-changing AI-enhanced products and services are likely considered a longer-term AI opportunity.”