Why Australian Tech Leaders Are Struggling to Adopt AI
New research has found that some countries are struggling more than others regarding the gap between AI opportunity and execution.
The pressure to implement AI comes as nations worldwide increase investment in its capabilities. For example, the US has committed US$280bn through the Chips Act to strengthen technological infrastructure.
However, in this AI scene, Australian technology leaders report their companies risk falling behind.
These concerns emerge from the 2025 Australian Tech Leaders Survey, conducted jointly by the Tech Council of Australia and Datacom, a technology services provider operating across Asia Pacific.
The research, which gathered responses from 200 senior technology executives, reveals a sector grappling with the pace of technological change amid economic headwinds.
AI adoption emerges as critical challenge for Australian firms
The survey reveals that while AI presents the largest growth opportunity, implementation remains a challenge.
One-third of respondents identified AI as their primary business opportunity for 2025.
Laura Malcolm, Managing Director of Datacom Australia, says: "It is a significant marker of where we are in our AI journey that Australian businesses expect that in 2025 the greatest opportunities will come from using technologies – like AI and automation – to drive operational efficiencies."
The findings also indicate that 67% of technology executives view AI as the defining technological trend for 2025, followed by cybersecurity at 17% and sustainability technologies at 7%.
Economic potential drives focus on AI implementation
The survey suggests that AI technology could generate £115bn (US$147bn) in economic value for Australia by 2030 and projects the creation of 200,000 jobs through AI adoption across sectors.
Damian Kassabgi, Chief Executive Officer of the Tech Council of Australia, says: "AI is transforming how businesses are run and these gains aren't limited to the tech industry; increasing AI and tech adoption will deliver benefits across the economy."
This research further indicates a shift in business priorities from talent acquisition to operational efficiency as companies report moving away from focusing on 'hard-to-fill jobs' and employee value propositions towards implementing technologies that enhance productivity.
Widening productivity gap as skills shortage bites
The research highlights mounting concerns about Australia's economic trajectory, with 93% of respondents stating the nation is not addressing its declining productivity.
Economic uncertainty ranks as the primary threat for 39% of technology companies.
- AI projected value to economy by 2030: £115bn (US$147bn)
- New jobs expected from AI adoption: 200,000
- Tech leaders identifying AI as top 2025 trend: 67%
- Companies with ESG strategies: 85%
- Leaders concerned about productivity: 93%
- Firms citing economic uncertainty as top threat: 39%
- Companies reporting ESG goals at risk from costs: 40%
- Executives prioritising skills shortage: 16% (up from 11% in 2024)
Damian says: "While 2024 was a big growth year for AI, there is huge potential for businesses to further embrace AI to work smarter and boost productivity."
Furthermore, the skills deficit continues to challenge the sector, with 32% of respondents citing lack of qualified personnel as their second most pressing concern.
Meanwhile, the proportion of executives who believe addressing the local skills shortage through training programmes should be prioritised has increased to 16%, up from 11% in 2024.
Laura says: "There is a strong consensus that as a country we are not doing enough to tackle our productivity challenges and that greater tech investment, tech adoption and skills training would help to reverse our falling productivity."
Tech industry faces dual pressure of innovation and sustainability
The survey additionally reveals that 85% of technology companies maintain ESG, however, 40% report that economic pressures threaten their ability to achieve these objectives
The research also suggests that circular technologies represent an emerging focus area, with 7%of respondents identifying these as a defining trend for 2025.
Moreover, cybersecurity remains a priority for technology leaders, with 17% identifying it as a critical focus area and this emphasis on security comes as companies increase their deployment of AI systems across operations
Laura concludes: “The responsible deployment of Gen AI tools and solutions has the ability to enable productivity gains and create space for our teams to focus on the more fulfilling aspects of their work."
Explore the latest edition of Technology Magazine and be part of the conversation at our global conference series, Tech & AI LIVE.
Discover all our upcoming events and secure your tickets today.
Technology Magazine is a BizClik brand