Research report: AI moves from concept to strategy for Aussie businesses

Mantel Group today released its 2024 State of Data & AI report revealing a small cohort of AI-aware leaders who have escaped proof-of-concept purgatory and are going ‘all in’ to achieve higher business value from the transformative potential of artificial intelligence and machine learning.

The analysis of over 20 large Australian organisations engaged in AI projects shows nearly a third (27%) of those investing in AI have changed their business model. 

“True AI-driven business transformation still has a long way to go, however, this cohort has a healthy head start,” Mantel Group’s Data Partner, Emma Bromet says. “There is a burning platform for leaders to establish a coherent plan about how AI will be used in their enterprises to remain competitive.”

Productivity gains remain the most compelling reason for organisations to invest in AI and machine learning (76%), Mantel Group’s analysis shows. This is followed closely by a desire to supercharge customer service departments, particularly by employing predictive analytics (62%).

Although organisations can easily find high ROI opportunities with AI, only 50% indicate they manage to align their AI activities well with business strategy. 

“Investors will expect businesses to invest in AI projects that align with core business activities. For CEOs this means assessing all the ways that AI can transform their organisation and prioritising the biggest prize over quick wins, the loudest voice, or whoever has the ear of the data team,” Bromet says.

Mantel Group’s analysis shows that while 73% of organisations have implemented company-wide training in AI and machine learning, talent strategies need to mature to extract transformative value from AI as part of an organisation-wide conversation. 

“A strategic approach to embedding AI requires much more than just developing a skilled workforce. Strong comprehensive upskilling programs need to be paired with an organisation-wide shift towards a data and AI centric culture and cultivating new practices such as AI product management,” Bromet says.