A recent survey from Pegasystems reveals rapid progress in artificial intelligence (AI) adoption among Australian businesses. The survey found that as AI becomes more prevalent, 96% of Australian business decision makers have integrated AI into their work. However, the survey raises an important question: are businesses ready to truly harness the potential of AI?
The survey results highlight a significant gap between perceptions of AI and actual readiness. While the majority of decision makers believe they have a good understanding of AI, only 4% believe their enterprise has been using it for more than 10 years, despite the technology having been adopted mainstream since the 1980s. This discrepancy is further highlighted by the fact that 67% would like AI to run entire departments, yet 68% have experienced failed AI adoption.
The study, conducted by research firm Savanta and released at Pegaworld iNspire in Las Vegas, found that the emergence of generative AI has led to wider acceptance of other AI tools aimed at improving productivity and driving transformation. Leveraging generative AI for creative and productivity-boosting tasks such as content creation and conversational chatbots, it was reported that generative AI is the dominant form of AI in the enterprise. Around 50% of Australian respondents rely heavily on it, while less than a third use rational and analytical AI decision-making solutions.
Financial commitments to AI are significant, with 94% of respondents expecting to expand their use of AI within the next five years. Additionally, 82% are confident that AI will transform their business over the next five to 10 years. 80% of companies are allocating up to half of their annual IT budget to AI solutions, yet 75% admit to wasting budgets due to a lack of strategic planning.
This increase in investment highlights the urgent need for a better strategic framework. Despite their confidence in AI, 78% of decision makers believe their business has been using AI for less than five years, which stands in stark contrast to the actual historical use of AI. Additionally, more than two-thirds of survey participants could not accurately define generative AI, which aligns with the high failure rate of AI projects.
Trust and fears about AI also paint a mixed picture. Nearly half of respondents are wary of relying on AI for their brand's success, with 48% concerned about AI transparency and bias. Additionally, 40% fear AI will take their jobs, and 44% are concerned about robotic control by AI. Despite these concerns, 67% would hand over department management to AI, believing it would improve overall outcomes. When it comes to customer relationships, 41% prefer human interactions supplemented by AI, while only 9% trust human engagement without AI assistance.
Demand for AI proficiency is growing, with 12% of respondents identifying weak AI skills within their organization as a barrier, and one in four seeing this as a significant impediment to further AI adoption. Conversely, 99% value AI experience highly when assessing new hires, with practical expertise in areas such as prompt engineering and AI theory being particularly sought after.
Don Schuurman, Chief Technology Officer at Pegasystems, commented on the survey results: “Generative AI is ushering in a new wave of enthusiasm, encouraging businesses to explore and implement different forms of AI that will enhance creativity and innovation. If organizations develop the skills and understanding necessary to ensure the success of their AI projects, we will see accelerated growth and adoption of AI in the coming years. We foresee a future where businesses will not only leverage AI productivity tools, but also work with AI to drive significant innovation that benefits both the business and their customers.”
The survey involved 500 business decision makers from around the world, including 112 from Australia, and reflects a wide range of perspectives on the challenges and opportunities of AI implementation. Participants were primarily from the US, UK, France, Australia and Germany.
