Aussie businesses are expanding AI offerings to meet demand: CSIRO

A report written for the CSIRO attempts to understand the uptake of artificial intelligence (AI) across local SMEs and big businesses, noting its benefits for the national interest will go beyond economic advantage.

The ‘Australia’s AI ecosystem momentum’ report considered the experiences of 200 information technology and business decision-makers.

With 60% of respondents reporting they are accelerating and expanding their AI offerings to meet market demand, the study confirmed local demand for AI products and services was growing.

Technology-focused growth strategies are also influencing business-growth predictions, with 80% of respondents indicating they expected year-on-year growth.

Launching the report, science and industry minister Ed Husic described AI as an “enabling capability” that was poised to transform industries. He said his agenda was to ensure AI’s economic potential could be tapped and optimised.

“Seizing that business potential will take some work, building awareness and working across businesses, large and small, to make that a reality,” Husic said.

“Australia’s got some top AI talent here and we need to scale up this effort for the longer benefit of the nation.”

The report identified improved security, greater revenue growth and increased cyber safety as the top three benefits of AI implementation in business. Other significant advantages of artificial intelligence uptake by businesses identified in the report included the automation of internal processes, and improved operational efficiency and effectiveness.

Husic also pointed to 2019 research from McKinsey that forecast an opportunity for between $1 trillion and $4 trillion to be added to the economy over the next 15 years if Australian sectors were able to seize the opportunities provided by artificial intelligence.

But the report also highlighted the complex implementation needs of AI, which requires multidisciplinary teams that can design appropriate end-to-end solutions for the context in which the capability will be deployed.

“This report is timely, suggesting a more nuanced direction for artificial intelligence in Australia and emphasising the importance of collaboration and having access to the right talent for businesses,” Husic said.

We've released a report that explores how Australian businesses are using artificial intelligence (AI).

It identifies the barriers businesses face in implementing AI technologies and solutions, as well as opportunities for navigating them. https://t.co/0dGu14eLYh

— CSIRO (@CSIRO) March 14, 2023

Most respondents to the report’s survey said they engaged at least four different technology and service providers to deliver an artificial intelligence project. A total of 28% of respondents said they worked with more than six providers.

Respondents who said they only worked with a single AI provider comprised 17% of the 200 businesses surveyed.

The CSIRO’s National AI Centre (NAIC) published its report on artificial intelligence adoption for business on Tuesday. Forrester Consulting was commissioned to write the report.

The NAIC was established by the government to build Australia’s digital ecosystem and support AI development.

In a statement, centre director Stela Solar said AI had moved beyond merely being a “futuristic promise” for business leaders to a rapidly growing priority.

“As the AI landscape continues to evolve, we may move closer to having AI providers that can provide end-to-end solutions,” Solar said.

“But for now, businesses should be comfortable with the idea of working alongside several providers to ensure they get complete solutions that deliver business outcomes.”

The CSIRO also urged business leaders to think more deliberately about responsible approaches to AI use, and to bring ethical decision-making into early project design work so that the ethical implications for customers, society and the world at large are an active part of the development process.

It was important to view AI as more than a business tool, Solar added. It should be regarded as a transformative capability for communities and national wellbeing, too.

“Business leaders should take the time to understand where AI can deliver benefits across their business.

“AI project exploration should start with identifying priority business outcomes, before moving to assess whether this is a unique challenge that will require a bespoke solution or if the solution already exists in a pre-configured or packaged form,” she said.

This article was first published on The Mandarin.