Australian businesses lag global counterparts in AI uptake, KPMG finds
Australian business leaders are lagging international counterparts in their investments into AI, a survey by KPMG has found.
KPMG’s 2025 global CEO outlook revealed that most (70 per cent of) Australian CEOs saw AI as a top investment priority, but nearly a third (29 per cent) committed less than 10 per cent of their overall investment budget into AI. Globally, only 17 per cent of CEOs spent this little on AI investment.
Alongside Australia’s comparatively lower investment into AI, KPMG also found that 40 per cent of Australian CEOs were learning as they went with AI, compared to 23 per cent of companies globally.
KPMG Australia CEO, Andrew Yates, warned that without effective national planning, Australia would fall behind on AI investment.
“Without a national plan and effective regulation around the responsible use of AI, Australians are unwilling to trust it, and without trust there will continue to be a lack of investment. Without investment, we won’t be able to reap the full productivity benefits,” Yates said.
“Australia stands at a pivotal moment in harnessing the power of AI, but adoption requires more than just enthusiasm, it requires a strategic plan that builds trust and confidence in its use.
“By empowering businesses to invest in AI and equipping the workforce with the necessary training, we can not only drive innovation but also ensure that the benefits of AI are shared equitably across the economy.”
While Australian investment in AI has appeared slow to launch by global standards, a majority (62 per cent) expected to see returns on AI investment over the next one to three years.
The report also found that 90 per cent of Australian CEOs were optimistic about the domestic economy’s growth prospects, despite trade uncertainty.
However, Aussie leaders were less confident when it came to the global economy. Only two-thirds (66 per cent) were confident in medium-term global growth prospects, compared to 73 per cent of US CEOs and 72 per cent of Japanese CEOs.
A majority (80 per cent) of Australian CEOs said they were optimistic about their company’s growth over the next three years, although this had softened somewhat from 86 per cent a year ago.
“I’m not surprised that Australian CEOs are still feeling optimistic about the growth of our economy, given household spending has seen a recent uptick, and the RBA has cut the cash rate,” Yates said.
“While the global economy is still facing uncertainty, Australia is less impacted by tariffs than many other countries and so our export markets have remained strong.”
About the author
