What do Aussie businesses need to do to keep up?

There has been mounting chatter that AI is growing even faster than the rapid acceleration we saw during the halcyon days of the internet.

The Internet took several years to reach millions of users, primarily because it required physical infrastructure like cables, routers, and personal computers to become widespread. On the other hand. ChatGPT took just 5 days to gain 1 million users when it launched in 2022 and Australian businesses are increasingly recognising the potential benefits that artificial intelligence (AI) can bring in driving productivity and growth.

The rapid growth of Generative AI (GenAI) is accelerated by markets that already have a highly connected user base, such as Australia, which leads in high-speed internet adoption. In fact, more than 93% of Australians have access to a home broadband connection, while smartphone penetration is at an impressive 98%.

As AI continues to evolve rapidly, Aussie businesses that do not adopt and invest in AI will risk being left behind, especially in this rapidly evolving market.

So here are five reasons AI is moving faster than the internet did and why businesses should jump on the AI bandwagon:

1. Australian businesses are beginning to use AI in daily operations

In Australia, AI integration is no longer an option but an essential criterion for businesses aiming to remain competitive in the market. 90% of Australian businesses have shared that adopting GenAI is a priority for them, with Australian spending on AI systems growing to over $3.6 billion by 2025.

At the same time, while companies and their leaders are rapidly adopting AI solutions and understand its value, a survey by Atlassian reveals that nearly half of Australian workers see AI as either useless or only occasionally helpful, highlighting that a significant hurdle still needs to be crossed.

The critical factor here for additional uptake of AI systems will be to educate workforces on how best to leverage AI in their day-to-day and bring in external specialists who know how best to align AI solutions with human capabilities.

2. AI empowers employees and improves productivity

Despite its recent emergence, GenAI is already influencing day-to-day business operations by automating routine tasks and generating more personalised experiences – allowing humans to spend more time on strategy and creativity.

For instance, banks have traditionally struggled to deliver high net promotor scores, often due to their scale and breadth of services. Rather than taking humans out of the equation, much of the work we do with banks is to deliver GenAI tools to customer service staff rather than directly to customers. This dramatically reduces the time it takes to gather accurate information, but still requires the human interpretation of those results, which is especially pertinent in financial services, due to strict compliance and regulations.

3. AI-powered search engines have taken off

ChatGPT has changed the way we think and work and has now become a source of inspiration for many.

In Australia, businesses are increasingly adopting AI-powered tools to enhance operational efficiency. Over half (52%) of Australian companies are already adopting AI technologies. Meanwhile, research from Grant Thornton highlights that GenAI tools like Google Gemini, Microsoft Copilot and Databricks are being used by nearly 50% of Australian businesses to boost efficiency. This integration of AI into business operations signifies a huge shift in how information is now readily available, underlining the need for Australian businesses to stay on top of the latest technological developments and ensure that such tools are available to employees.

4. The $315B opportunity leading Australia's economy

The Australian AI market is growing significantly and is projected to be worth US$315 billion by 2028, according to CSIRO.

This aligns with OpenAI CEO, Sam Altman Altman’s recent predictions during a Reddit AMA (Ask me Anything), where he highlighted emerging AI trends and the growing autonomy economy, which is expected by 2025. His insights underline AI’s transformative role in sectors vital to Australia's future, such as healthcare, agriculture, and defense.

5. AI is everywhere

Just a year or two ago, we would seldom hear people outside of tech circles discussing AI, however, nowadays, AI solutions are now the talk of the town and there is a palpable sense of momentum in the space.

Our interactions with the technology will become increasingly personalised. Chatbots, for example, can be clumsy and frustrating today, but will eventually become truly conversational, learn our habits and personalities and even develop personalities of their own.

Telstra has revealed that its latest AI developments, Ask Telstra and One Sentence Summary, have improved the effectiveness of 90% of its customer service agents in trials, reducing follow-up calls by 20% and aiding in faster onboarding for new staff.

Moving into 2025, GenAI will no longer be just a buzzword – it's becoming part of our everyday life. We are standing on the brink of one of the most significant shifts in modern history. The best part? We have a unique advantage to learn from history — how the Internet shaped our lives and how AI is now doing the same, at lightning speed.

As AI continues to advance, it is crucial for businesses to not only incorporate the technologies into workflows, but also to know how to strategically integrate AI to drive innovation, improve efficiency, and deliver greater value to their customers through proper onboarding, adoption and training and education of employees. By combining the power of AI with human ingenuity, Australian businesses can achieve unparalleled growth and maybe even exceed the benefits that came with the Internet.