Artificial intelligence (AI) has gone mainstream, but its implementation is still a major challenge, according to a new report from the government-funded National AI Center (NAIC).
The report, Australian AI Ecosystem Momentum Reportspoke to more than 200 business decision makers and AI service providers about how they used the technology to grow revenue and improve efficiency.
While companies of all sizes are eager to embrace AI technology, its implementation often requires multidisciplinary teams to design end-to-end solutions and the problem is that the service provider ecosystem is still fragmented and niche. A majority of respondents to the report, 60%, said they are accelerating and expanding their AI offerings to meet market demand.
But privacy, security and data quality are challenges to AI adoption, exacerbated by a shortage of talent to implement and operate AI systems.
As a result, NAIC director Stela Solar said companies should be comfortable with the idea of partnering with different providers to ensure they get complete solutions that deliver business results.
“Before thinking about collaborating with external partners on their projects, business leaders should take the time to understand where AI can benefit their entire business,” she said.
“Exploring AI projects should begin with identifying key business outcomes before assessing whether this is a unique challenge that requires a tailored solution, or whether the solution already exists in a pre-configured or packaged form.”
The companies involved in the NAIC analysis reported having engaged at least four AI technology and service providers to deliver a project, while 28% said they had worked with more than six providers. Only 17% use one provider.
The good news, Solar said, is that Australian companies responding to the analysis reported average revenue growth of $361,315 for every AI solution they implemented.
“More than 80% of companies surveyed expected their sales to grow year-over-year, with technology at the center of their growth strategies,” she said.
The report also highlights the importance of a ‘Responsible AI’ approach, as AI can have far-reaching ethical implications for customers, society and the world at large. It calls on business leaders to take responsibility in building and deploying AI systems that deliver responsible results.
The top three benefits of implementing AI, according to the report, are improved security, increased revenue growth, and increased cybersecurity.
Further automation of internal processes and improved operational efficiency and effectiveness also proved to be key benefits of AI adoption.
Science and Industry Minister Ed Husic said AI is poised to transform industries.
“AI should be seen as more than just a business tool. We can put it to work to benefit communities and national well-being,” he said.
“But it will take some work to tap into that business potential, build awareness and work with companies big and small to make that a reality. Australia has some top AI talent here and we need to scale up this effort for the nation’s longer benefit.
Download the AI ecosystem report here.
