B2B Marketing, Marketing Strategy

Australia and New Zealand lag behind in generative AI adoption

Adobe’s 2024 Digital Trends Asia Pacific and Japan Report is out, and while APAC and Japan (APJ) are leading the world in generative AI adoption, Australia and New Zealand are lagging behind.

The global state of generative AI adoption

Across the APJ region, 65% of brands have implemented full or initial AI solutions and pilots. The US follows closely with a 61% adoption rate, while European brands come in third at 55%.

Global AI adoption

APAC’s leadership and ANZ’s lagging position

APJ’s numbers are impressive. When we exclude Australia, New Zealand, and the Pacific, our neighbours can be seen flying ahead with an 82.5% adoption rate, making them unparalleled global leaders.

Japan is at the forefront with 82% AI deployment, followed by India and other Asian countries, with each region at 72%. In stark contrast, ANZ lags significantly with just 50% adoption.

APJ AI adoption

This adoption is fueling organisational change. In Asia, 80% of brands plan to reorganise teams to be better structured for their generative AI use and solutions. And these numbers stay high across the region. In India, 74% of companies plan to reorganise, and even in Australia and New Zealand, 67% have reorganisation plans on the table. Perhaps a tell that, although behind, ANZ are acutely aware of the changes necessary for the future.

Introducing AI leadership roles

As part of this organisational shift, the introduction of AI leadership roles is a priority across the region. India is at the forefront, with 78% of companies planning to create dedicated AI leadership roles, followed by 73% in Asia.

Interestingly, ANZ also shows a relatively high level of intent, with 64% of companies planning to introduce these roles despite the current adoption rates looking to lag.

APAC leadership roles for generative AI

While leading in adoption, Japan has the lowest percentage (60%) planning to introduce AI leadership roles, possibly due to a more mature integration of AI within existing leadership structures.

AI’s use in content creation

Generative AI is so much more than a content creation tool, but there’s no denying this is where its use is most dominant. In ANZ, 75% of brands recognise the clear benefits of using AI for content creation. However, only 27% of practitioners in the region routinely use generative AI for tasks such as crafting emails, messages, and other copy.

AI for content creation

This makes absolute sense. There is a great risk to brands that take a swing and a miss using AI-generated content.

Everyone with access to the internet today would have noticed an uptick in terribly written, unsolicited emails and poor-quality content circulating online. McKinsey’s “The State of AI in 2023: Generative AI’s Breakout Year“ reveals that only 32% of organisations globally are actively mitigating the risk of sharing inaccurate AI-generated content. It is not a stretch to draw a parallel between this failure to monitor for quality and the spread of inaccurate or low-quality content.

Content is the low-hanging fruit of generative AI. Caution is wise, but research shows that businesses leveraging AI can boost productivity by as much as 40% compared to non-AI users. ANZ businesses risk missing out on these substantial productivity gains if their adoption is delayed, giving their global competitors a significant lead that could be hard to make up.

Business and industry adoption

In healthcare, generative AI is being leveraged for predictive diagnostics, personalised treatment plans, and drug discovery. Australian health tech companies and research institutions increasingly integrate AI to enhance patient outcomes and streamline operations.

The financial sector in Australia has also embraced generative AI for tasks such as fraud detection, customer service automation, and financial modelling. AI-driven chatbots and robo-advisors are becoming common in banks and financial institutions.

In retail, generative AI creates personalised shopping experiences, optimises supply chains, and enhances customer engagement through targeted marketing campaigns.

Challenges and governance

As generative AI becomes more pervasive, governance and responsible usage challenges are coming to the forefront. In APJ, 73% of brands are developing guidelines for responsible AI usage, and 71% are aligning a comprehensive AI roadmap with broader business goals. These efforts are crucial in ensuring that AI not only drives growth but does so in a way that is ethical and sustainable. ANZ companies must also prioritise governance to prevent potential risks associated with AI, such as biases in AI models and data privacy concerns.

In Australia, the government has taken a proactive approach to promoting AI adoption. The country’s AI Action Plan outlines strategies to support AI innovation and its ethical application.

Here are the highlights:

1. Developing and adopting AI to transform Australian businesses

  • Supporting businesses in adopting AI technologies to increase productivity and competitiveness.
  • Initiatives like establishing the National AI Centre and AI and Digital Capability Centres.

2. Creating an environment to grow and attract the world’s best AI Talent

  • Ensuring Australian businesses have access to world-class talent.
  • Programs like the Next Generation AI Graduates Program to train and attract AI specialists.

3. Using cutting-edge AI technologies to solve Australia’s national challenges

  • Leveraging AI to address national challenges in areas such as healthcare, environment, and defence.
  • Programs like AI Solutions to Build a Stronger Australia.

4. Making Australia a global leader in responsible and inclusive AI

  • The importance of developing AI that reflects Australian values and is trustworthy.
  • Implementation of AI ethics principles and the promotion of responsible AI both domestically and internationally.

Regarding governance and regulations, the action plan highlights the importance of:

  • AI Ethics Framework: Ensuring that AI technologies are developed responsibly, aligned with ethical standards, and reflect Australian values.
  • Privacy Act Review: Updating the Privacy Act to ensure it is fit for the digital era, strengthening privacy protections for individuals.
  • Data Governance: Establishing standards for the safe and transparent sharing of public sector data through the Data Availability and Transparency (DAT) Bill 2020.

The imperative for Australia and New Zealand to embrace generative AI

Generative AI, particularly in sectors like information technology, customer service, and content creation, has demonstrated the ability to double productivity in some cases. For instance, large language models (LLMs) have been shown to increase the efficiency of tasks such as software development by as much as 50%, while customer service operations have seen a 14% boost in productivity when AI tools are integrated.

Yet, these benefits are not uniform. A growing divide is emerging between those who quickly adopt AI and those who lag behind. Research highlights that the most productive firms can outpace their slower-moving counterparts by factors of five or more, particularly in technology-driven sectors. This disparity is likely to widen, leaving laggards struggling to keep up as AI becomes an integral part of business operations across industries.

For Australia and New Zealand, the message is clear: adopting AI is not optional; it’s necessary to remain competitive on the global stage. As AI-driven productivity gains continue to reshape industries, the failure to integrate these technologies could leave businesses here at a significant disadvantage. The time to act is now.

Contact The Lead Agency for industry insights and B2B marketing strategies to position you ahead of the curve.

 

This article was written with the help of