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Australian companies lack defined AI strategies while AI ambitions far outstrip implementation.
A new report has shed light on the uptake of generative AI (GenAI) among Australian businesses, and the outlook is dire.
According to EXL’s AI Readiness Report 2025, only a third of companies have a defined AI strategy guiding their uptake of the technology, while only 16 per cent describe their in-house AI as completely integrated into business workflows.
Similarly, only 39 per cent of companies have adopted AI to improve customer experience or internal operations.
In fact, only 6 per cent of Australian organisations are actively implementing generative AI.
“The main reason most companies aren’t getting GenAI right is that they lack the data foundation to support it. If your data isn’t clean, connected and meaningful, even the smartest models won’t deliver. Add to that a shortage of people who understand both AI and business, and it’s no surprise that scaling is proving difficult,” Vilas Madan, head of APAC growth at EXL, told Cyber Daily.
“There’s a major disconnect between ambition and execution. It’s not surprising, we see it everyday. Australian businesses know AI is critical, but most are still in the early or planning stages when it comes to data strategy, adoption and capability. The appetite is there, but delivery is lagging. Essentially, they are trying to run before they’ve learned to walk; the foundation isn’t there, and without it, GenAI will never live up to the promise.”
The report, based on a survey of 180 professionals from across Australia, also found a lack of trust in the technology. Less than 30 per cent of those surveyed were confident in the accuracy of AI-driven insights.
Only 48 per cent of Australian businesses have a formal data strategy in place, despite 35 per cent stating that managing data was a top priority for their organisation and 66 per cent identifying their company as data-driven.
“To get back on track, companies need to fix their data, build the right teams and embed AI into the way the business operates. It has to move beyond pilots and one-off projects,” Madan said.
“This is about integrating AI into the operating model.”
David Hollingworth has been writing about technology for over 20 years, and has worked for a range of print and online titles in his career. He is enjoying getting to grips with cyber security, especially when it lets him talk about Lego.
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