Australian industries are ramping up their adoption of artificial intelligence (AI) and other advanced technologies to boost productivity and address workforce challenges, an Ai Group report has revealed.
This shift comes as businesses push for clearer regulatory frameworks to provide confidence for long-term investments in AI and support efforts toward achieving net zero emissions.
The report, titled Technology Adoption in Australian Industry: Commercial, Workforce and Regulatory Drivers, finds that 84 per cent of the 182 businesses surveyed—which employ a combined 27,271 workers—are integrating new technologies.
The primary driver behind these adoptions is increasing productivity, with many companies seeing technology as vital to business expansion, operational efficiency, and global competitiveness.
“This is a welcome sign as the country strives to lift productivity, the key to unlocking better living standards and higher wages,” said Innes Willox, chief executive of the Australian Industry Group (Ai Group).
In the survey conducted in August and September, 52 per cent of businesses cited AI as central to their productivity strategies, while 45 per cent highlighted new technology as instrumental in their transition to net zero.
Yet despite these strides, challenges remain, particularly around workforce skills and regulatory clarity.
Ai Group noted that regulatory concerns are hindering progress, as businesses express hesitancy about the perceived lack of mature AI guidelines, which could otherwise support secure and informed investments.
“We are also seeing a larger number of businesses recognise AI as part of their productivity pathway,” Willox added.
“But they are concerned about having access to the workforce they need, and are nervous about what they see as immature AI regulations which are needed to provide investment confidence.”
Energy policy uncertainty is another pressing issue. Without reliable, long-term policies, companies are finding it difficult to factor energy costs into their net zero commitments, further impacting their investment strategies.
The report was officially launched today in Newcastle by Minister for Industry and Science, Ed Husic, at engineering and manufacturing company Varley Group.
During the event, Varley Group CEO – Defence, Victor Ugarte, spoke about how advanced technology is transforming the company’s operations both in Australia and internationally.
“Minister Husic’s visit to Varley presents an invaluable opportunity to showcase how Varley Group is embracing advanced technologies to drive productivity and enhance our competitiveness in both domestic and global markets,” said Ugarte.
“With a legacy of 138 years in engineering excellence, this commitment is deeply embedded in our culture. We are actively integrating advanced technologies across our operations, products, and system solutions to create smarter, more resilient outcomes.”
Varley Group’s investment in AI and other emerging technologies also underscores its dedication to sustainable practices, Ugarte noted.
By integrating these technologies, the company is able to achieve resilient outcomes that align with the evolving needs of its customers and broader environmental goals.
The Ai Group report underscores the dual potential of AI: to transform business productivity and support sustainability initiatives across Australia’s industrial sector.
However, it also highlights the need for a robust policy framework to provide businesses with the regulatory and workforce support they require to maximize AI’s benefits.
The full report, Technology Adoption in Australian Industry: Commercial, Workforce and Regulatory Drivers, is now available for download.
