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Data & AI Market Narratives The AI Value Challenge – Bridging the Gap Between Investment and Returns in Australian Organisations Feb 28, 2025 Despite major AI investments, 77% of Australian organisations struggle to gain measurable value, shifting focus to pilots and workforce empowerment. Request to Download

Despite substantial investment in AI, most organisations in Australia are struggling to generate measurable value, with 77% reporting ineffectiveness. A shift from large-scale implementation to pilot projects is evident, but fundamental issues such as data skills and culture remain obstacles. Companies are now focusing on new metrics like workforce empowerment and operational efficiency to assess AI’s true impact.

 

Core Insights:

AI value generation challenge

  • 77% of organisations report struggling to generate meaningful value from their AI investments, with only 4% claiming high effectiveness.
  • Small pilots show more success (44% effective), while large-scale AI projects are much less effective (12%), highlighting a gap between successful experimentation and scaling.

Barriers to AI implementation

  • Technical barriers, notably the lack of data skills (24%) and inconsistent data culture (19%), are impeding broader AI success.
  • Funding challenges remain significant (20%), but issues like governance, compliance, and infrastructure readiness are also emerging…

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