Australian companies lag behind in AI adoption compared to other companies in APAC

A new research report has found that the adoption of artificial intelligence (AI) by Australian companies is significantly lagging behind that of their counterparts in Asia Pacific. PERSOLKELLY Australia’s 2024 APAC Workforce Insights report shined a light on business leaders’ attitudes towards AI implementation, revealing that a third (33%) of Australian businesses are not using AI or have no plans to do so.

Additionally, this research suggests a potential lack of awareness among business leaders about the extent of AI and machine learning already installed in everyday software and apps like Google Search. Compared to Australia, New Zealand leads the way in current AI adoption in the workplace, with an impressive 82% adoption rate, while the Asia-Pacific average is 43%. Australia lags behind with only 35% of companies using AI, making it one of the markets with the lowest AI usage.

Interestingly, Australian employers appear to have an optimistic view of AI and its potential impact on jobs. The report shows that 41% of Australian employers do not expect significant job displacement due to AI, which is in stark contrast to the dismal regional average of 16%. This optimistic outlook has led to a subsequent decline in interest in other plans to manage it. At the other end of the spectrum, only 8% of business leaders in India share the same optimism, making India more in favor of controlling job displacement than the regional average. Similar trends are being observed in Vietnam, China and New Zealand, all of which expect greater job displacement and are showing greater interest in plans to manage it.

Another key insight to emerge from the research is the hesitation among Australian companies to adopt formal AI policies in the workplace. Only 18% of organizations that have embraced AI have developed policies around it within six months of implementation. Quite alarmingly, more than a third (38%) of these companies admit they have no plans to adopt formal policies at all. In contrast, 21% of business leaders said it would take up to a year to adopt AI policies, compared to the higher regional average of 29%.

On a more positive note, Australian employers are keen to upskill their employees in AI-related roles. More than half (52%) of business leaders are prioritizing the implementation of upskilling programs, with 44% maintaining transparent communication about the potential impact of AI on functions. The critical skills Australian workers need to acquire to navigate the AI ​​workplace include critical thinking (45%), digital literacy (36%), creativity (36%) and adaptability (35%). And only 8% of organizations are considering the possibility of hiring people with the necessary AI skills to fill the existing skills gap.

Kurt Gillam, Executive General Manager at PERSOLKELLY Australia highlighted: “While Australia has a robust business environment, the slower adoption of AI practices and policies in the workplace could hinder its long-term competitiveness globally. To stay ahead and continue to be a leading nation when it comes to businesses large and small, Australian businesses must embrace AI and leverage the opportunities and benefits this technology offers.”