"AI Readiness Mirage": New Study Highlights Overconfidence in Australian AI Adoption

Media Alert: AI & Digital Experience  Survey 2024 Launch

 
Riverbed's latest research reveals significant insights into Australian companies' AI adoption, uncovering a gap between confidence and readiness for AI projects. 

Australian companies overwhelmingly believe they are ahead of their peers in AI adoption, with 83% confident in their position. However, this confidence may be misplaced. The survey found that only 35% of respondents said they were fully prepared to implement AI projects today, indicating a potential "AI readiness delusion."  

This mismatch suggests that overconfidence in AI capabilities could lead to strategic missteps and disappointment. In addition to seeing themselves ahead now, 89% of organisations expect to be fully prepared within three years. 

Australian organisations are making significant financial commitments to AI, investing an average of AUD 22.9 million across AI initiatives. IT departments are absorbing a substantial portion of this investment, with AUD 13.2 million dedicated to IT services on average. 

Notably, 100% of Australian organisations surveyed are already using AI, with 68% accelerating AI deployment. AI is also expected to mature quickly and become a growth driver. While today, 55% of leaders say the primary reason for using AI is to drive operational efficiencies over growth (46%), those numbers flip in 2027, with 58% of organisations saying AI will primarily be a growth driver. 
 
Despite these investments, AI projects show mixed results—59.24% of AI projects meet expectations, while 23.22% underperform, and only 17.54% exceed expectations. 

The fact that nearly a quarter of Australian AI projects are underperforming raises questions about the effectiveness of data strategies and AI readiness. A key concern is the availability of high-quality data, with 38% of decision-makers citing this as a barrier to further AI investment. 

Additionally, 79% of respondents expressed concerns over AI accessing proprietary data in the public domain, reflecting ongoing fears around data security and privacy. 

The report also explored generational differences. When asked which generation of employees is most comfortable with leveraging AI within their organisation, 53% of respondents selected Gen Z (born 1997-2012), followed by 41% selecting Millennials (born 1981-1996). Only 6% of respondents identified Gen X (born 1965-1980) as the most comfortable, and no respondents selected Baby Boomers (born 1946-1964). 

As AI becomes more embedded in IT and business processes, companies increasingly focus on AI observability to ensure full-fidelity data coverage. This allows for better visibility into AI-driven IT services, helping companies manage risks and improve performance.  

Additional findings include: 
 

• AI observability is seen as critical, with companies increasingly focusing on full-fidelity data to improve visibility and manage AI-driven IT services. 
• Cybersecurity concerns remain a significant barrier, with 79% of decision-makers worried about AI's impact on data security. 
• Training and skills: Only 49% of Australian companies offer extensive AI training, while 51% provide adequate training to ensure AI literacy. 
• Operational integration: 68% of Australian companies are accelerating AI deployment across their IT services, and 28% are fully integrating AI into business processes. 
• AI-driven automation: 44% of IT departments in Australia are using AI for event correlation, management, and automation of IT tickets. 
• AI trust: Respondents are more likely to trust AI for major IT upgrades (64%) than to trust driverless cars in city settings (36%). 
• 79% worried about AI's impact on data security. 

Link to global survey can be found here