The race to AI maturity is on, and those with their head in the sand, unwilling to make the jump and bring the whole team on this rapid change journey, will be left in the dust.

But where to start? What’s the hold-up? Who is in the lead? How do we overcome the array of hurdles to get there? And finally, what rewards await us on the podium after we endure the hard work?

Right now, there’s a lot of buzz about GenAI, some experimentation and little action. This was the resounding message conveyed by more than 400 professional Australians at varying levels of seniority through our inaugural State of AI in Australia Report. 

The research revealed insights into AI adoption across industries and departments and the path to AI proficiency.

Despite obvious kickbacks, Aussie businesses are sluggish in embracing AI

We’ve heard it before; AI will be a game-changer. It will distinguish the businesses that will still be around in ten, or even three years’ time from those that won’t last the distance. The benefits are clear and widely acknowledged, but for some reason, most organisations haven’t left the gates.

Our data showed more than four-fifths (86%) agree we should be embracing AI, and that AI drives efficiency, competitive advantage and customer engagement above all else. Therefore, you’d think businesses would be chomping at the bit to roll out the technology and relevant training across the business, right? Wrong. 

The survey found that although more than three-quarters (77%) believe AI is a business priority, organisations are still slow in adopting the technology, with only one in five (21%) respondents describing their organisation as mature in AI. 

This sluggish adoption rate is closely tied to a broader challenge: many organisations' low maturity in using data to drive decisions. The research revealed that a core hurdle companies must first overcome is developing more robust and mature data capabilities. 

This foundational step is crucial, as effective AI implementation relies heavily on an organisation's ability to collect, manage, and leverage data effectively, indicating that for many businesses, the path to AI maturity begins with addressing and improving their overall data infrastructure and analytics capabilities.

So what’s the hold-up? Businesses face a plethora of barriers

Businesses are still choking when it comes to actually taking AI action because they don’t know where to start. The data revealed that the number one barrier to implementation was too many competing priorities (43%), followed by a lack of skills (38%) and a lack of strategy (33%). 

The next barriers were ethical concerns (29%), regulation and compliance (26%), and fear of AI (24%).

This means that AI should be moved to the top of any business leader’s to-do list today. Map out the steps to reach AI maturity embedded by modern governance for velocity and as an enabler. 

Good governance is there to help us say 'yes' responsibly, not just 'no'. With people at the heart and ample investment to back it up. It is undoubtedly the single most effective initiative that will put you in the slip lane to success. Otherwise, make no mistake; there will be a dark horse that will take your place.

Government lags emphasising a need to become more agile

The public sector isn’t keeping up when it comes to AI. Less than 1 in 10 (6%) of government respondents described their organisation as mature in AI (compared to 21% overall) and less than half (44%) stated AI is a business priority compared to more than three quarters (78%) in the private sector. 

Government respondents rated the level of AI skills of the people in their organisation just 2.75 out of 10 and they rated AI training a lowly 1.56 out of 10.

Despite scoring lower than other industries, an overwhelming majority (75%) of respondents in Government agree that AI should be embraced. The Public Sector needs to look in the mirror and shed some weight if it hopes to be a true competitor in the AI race. Only then will it have a chance on the track.

Investment in creating the right teams and upskilling is crucial to success

A pedigree horse won't get far without a nurturing trainer and a jockey to steer the way. Similarly, our research showed that AI isn't the end goal, nor can you simply slap it onto your tech stack and hope for the best. 

The true objective should be to supplement, enhance, and optimise existing processes, systems, and workflows with the help of AI. This highlights the need for businesses to deliver comprehensive AI training, prioritise AI adoption in strategic plans and allocate budgets accordingly. 

This will equip the workforce with the skills needed to effectively leverage the technology and realise its benefits. 

When asked about the current level of AI skills of the people in their organisation, the results were disappointing, with just 4.5 out of 10 being the most common answer. Concerningly, it appears current upskilling efforts are inadequate to address this. 

When asked about their organisation’s AI training, Aussie professionals offered an average rating of just 3.17 out of 10. Yet respondents rated the importance of up-skilling in AI for future career prospects at 7.5 out of 10. 

When asked to nominate all the ways their organisation plans to overcome their relevant AI adoption barriers, 42% said to start a training program and 33% said to recruit AI-skilled staff.

AI training isn’t just what employees desire,  it’s also good for business. With the right support to effectively wield the tools, your people will be crucial to unleash your business’s potential.

Businesses should start small and scale quickly. Develop small specialist teams and ensure they are enabled with leadership support and clear parameters. Set measurable outcomes with the right data to prove effectiveness before expanding the application of AI across the business where it makes the most sense.

AI continues to rapidly evolve, organisations that have a clear strategic plan towards AI maturity will drive efficiency, innovation and sustainable growth well into the future. While there are roadblocks, the ways to overcome them are clear and doing so will ultimately help organisations onto the home straight.