A third of Aussie businesses aren’t using AI: What effect could this have on the workforce?

The artificial intelligence (AI) race has become a major concern for countries across the world, and a consequence of that is the rapid adoption of this technology in the workplace. New research has revealed that Australia is lagging behind other countries in embracing AI, and the impacts could be severe.

One-third of businesses across the country aren’t using AI and have no plans to, according to PERSOLKELLY Australia research.

Comparatively, the Asia-Pacific (APAC) region average is 43 per cent, and our neighbours in New Zealand are leading the charge, with workplace AI usage at 82 per cent.

The consequences of this lack of adoption may reach further than damaging the individual companies and could impact Australia’s ability to compete with overseas competitors.

“While Australia boasts a robust business environment, its slower uptake of AI practices and policies in the workplace could hinder its long-term competitiveness globally. In order to stay ahead of the curve and continue to be a leading nation when it comes to business large and small, Australian businesses need to embrace AI and seize the opportunities and benefits this technology presents,” said Kurt Gillam, executive general manager at PERSOLKELLY Australia.

A major reason for this disconnect is the perceptions of leaders, with 41 per cent of Australian employers not recognising significant job displacement due to AI. APAC, however, saw just 16 per cent agree. This highlights the lack of interest across the country.

Even the organisations that have implemented AI are not supporting the changes appropriately. Just 18 per cent of those that introduced this tech constructed policy to support the changes within six months of implementation. Meanwhile, 38 per cent have no plans to enact policy at all. Twenty-one per cent of Aussie leaders said it would take up to a year to establish AI policies, compared to the regional average of 29 per cent.

Those who choose to be ignorant of the potential of AI can lead to a variety of missed opportunities and wasted potential. While AI isn’t a saviour of an organisation, it’s an enabler of streamlined and automated practices that allow people to invest their time more impactfully.

The cost of ignoring this tech can be significant, and according to founder and chief executive of Khrexel Tech Group, Mirchelle McKoy, it can leave businesses at a disadvantage:

1. Missed opportunities for efficiency and innovation: High-performing companies leverage AI for more than just cost reduction; they use it to create new businesses, enhance product value, and optimise services. Companies that fail to embrace AI risk falling behind in innovation and efficiency.
2. Employee engagement and organisational culture: AI significantly influences employee engagement and the dynamics of the workplace. Businesses that overlook this aspect may face challenges in staff motivation and productivity. Successful AI implementation requires a change in management strategy, focusing on trust and transparency between leaders and employees.
3. Time and cost savings: AI tools have been shown to save professionals an average of two hours and 24 minutes daily, especially in routine tasks like note-taking and data entry. Companies not using AI are missing out on these significant time and cost savings, which could be reallocated to high-impact projects.
4. Stagnation in a competitive market: The global market is increasingly embracing AI. Around 80 per cent of enterprises now recognise AI and machine learning as key to achieving business goals. Those not adopting AI risk stagnation and losing their competitive edge in the market.
5. Security and strategic risks: AI presents its own set of challenges, including security weaknesses and the need for a well-defined strategy. However, not adopting AI could lead to even greater risks as competitors leverage these tools for cyber security and strategic decision making.
6. Quality control and decision making: AI enables businesses to enhance quality control and make smarter decisions. This is particularly critical in sectors like retail and e-commerce, where AI can analyse customer data for insights and predict market trends.

Amid the “AI era” of work, getting this tech right should be of top concern for employers. To assist, PERSOLKELLY provided five tips for implementation:

1. Invest strategically in AI: Recognise AI as more than just a technology; it’s a strategic investment that can reshape operations, customer experiences and competitiveness.
2. Develop an AI-ready workforce: Prioritise upskilling current employees, attracting AI specialised talent and fostering a culture of continuous learning and adaptation to new technologies.
3. Differentiate between AI hype and reality: Stay informed about AI developments, make decisions based on facts and avoid following trends that don’t align with business objectives or deliver tangible benefits.
4. Optimise operations or exit: In anticipation of economic stagnation, assess assets and markets for profitability and consider divesting from underperforming areas.
5. Drive growth through strategic partnerships: Explore opportunities for strategic mergers, acquisitions, and joint ventures to acquire new capabilities, enter new markets or enhance AI capabilities.

Jack Campbell

Jack is the editor at HR Leader.