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Market Narratives
Low ROI and Unclear Priorities – Scaling AI Remains a Struggle
Jul 4, 2025
Many Australian firms face challenges unlocking AI’s value held back by leadership gaps, poor data, and operational barriers, especially in smaller businesses.
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Despite growing investment, most Australian organisations are struggling to realise value from AI. Operational hurdles, leadership gaps, and poor data quality are holding back returns, especially for smaller and mid-sized enterprises.
Core Insights:
- ROI is falling short: Nearly 70% of CDAOs report little to no return from AI initiatives, with unclear use cases and long execution times compounding the issue.
- Barriers go beyond tech: Lack of executive backing, funding constraints, and data quality issues are the top blockers to progress.
- Success is uneven: Larger organisations are seeing more traction, while smaller firms remain stuck in early-stage exploration, underscoring the need for industry-specific, scalable support.