90% of Australian businesses are using AI. Only 39% feel confident doing it.

The Atamai Perspective

Anne McGuire  ·  Founder, Atamai Advisory  ·  June 2026

90% of Australian businesses are already using AI.

Only 39% feel confident implementing it properly.

That gap tells us almost everything we need to know about where Australian organisations stand today.

In the weeks leading up to launching Atamai Advisory, I reviewed several reports on AI adoption, transformation and organisational readiness. Despite coming from different sources, they all pointed to the same conclusion.

The challenge isn't awareness.

The challenge is execution.

AI has moved to the top of the agenda

KPMG's latest research found AI is now the number one challenge facing Australian business leaders, ahead of digital transformation.

At the same time, the National AI Readiness Index found:

  • 83% believe AI will impact their business within 12 months

  • 90% are already using AI tools

  • Only 39% feel confident implementing AI properly

  • Only 24% have a clear AI strategy

The belief is there.

The confidence isn't.

The problem isn’t technology.

What stood out most to me wasn't the AI statistics themselves.

It was how closely they mirror what we've seen for years with transformation programs.

Forrester's research found most organisations are running multiple transformation initiatives at any given time, yet only a quarter have the governance structures needed to connect those efforts.

Different technology. Same challenge.

Organisations aren't struggling because they lack tools.

They're struggling because priorities aren't aligned, ownership isn't clear and execution becomes fragmented.

AI is proving to be as much a leadership and operating model challenge as it is a technology one.

What this means

Forrester's latest research adds another layer to the picture.

Most organisations are running multiple transformation initiatives every year.

Yet only a minority have the governance and operating structures required to connect those efforts into something coherent.

  • 72% of organisations run four or more transformation initiatives annually

  • Only 24% have cross-functional governance that aligns business, process and technology decisions

The pattern is familiar.

Ambition is increasing.

Investment is increasing.

Activity is increasing.

But the operational foundations needed to turn those investments into outcomes are often missing.

This is where many organisations get stuck.

They treat AI as a technology challenge when it's actually an operating model challenge.

New tools are layered onto unclear ownership, fragmented decision-making and competing priorities. The result is predictable: lots of activity, very little impact

Investment is accelerating regardless

Whether organisations feel ready or not, investment is coming.

Enterprise AI spending across Asia Pacific is projected to grow from approximately US$90 billion in 2025 to US$176 billion by 2028.

Boards are demanding AI strategies.

Executives are under pressure to demonstrate productivity gains.

Teams are experimenting faster than governance frameworks can keep up.

Yet UiPath's research highlights a sobering reality.

While 65% of organisations were piloting agentic AI by mid-2025, only 5% reported meaningful returns.

What this means

The organisations that succeed with AI won't necessarily have access to better technology.

They'll have better clarity. Clarity about where AI creates value. Clarity about priorities. Clarity about ownership.

And clarity about how work gets done.

Because AI doesn't remove the need for good execution. It makes it even more important. The businesses creating the most value from AI won't be the ones chasing every new tool.

They'll be the ones building the foundations that allow innovation to scale.

SOURCES

KPMG Australia, Keeping Us Up at Night (8th edition, 2025)  ·  Decidr, National AI Readiness Index Report 2025  ·  Forrester Consulting / SAP, The Capability Mindset (2026)  ·  UiPath, 2026 AI and Agentic Automation Trends: APJ Edition

About Anne McGuire

Anne McGuire is Founder of Atamai Advisory, an executive advisory practice helping organisations navigate growth, transformation and AI through better operating models, organisational capability and practical execution.

Anne writes The Atamai Perspective, sharing observations from more than 20 years leading operations, transformation and technology inside global enterprises and high-growth businesses.

Work With Atamai Advisory

If your organisation has outgrown the way it currently operates, let’s talk.

atamaiadvisory.com

Previous
Previous

AI Isn’t Your Strategy. It’s Revealing Whether You Have One.