Australian businesses trail their Asia-Pacific counterparts in their digital strategy and AI adoption, according to a major survey by CPA Australia.

However it is not all bad news – our focus on cybersecurity and data protection is a positive for Australian businesses.

CPA Australia’s 2024 Business Technology Report found that only 53 per cent of Australian businesses have a digital strategy, compared to 69 per cent of businesses based outside of Australia, including Mainland China, Hong Kong, Vietnam, Singapore and Malaysia.

Businesses that have such a digital strategy are much more likely to report their profit is increasing.

Nearly seven in 10 businesses – 69 per cent – with such a strategy reported their profitability increased in their most recent financial year.

Of those that didn’t have such a strategy, only 35 per cent reported increased profitability.

CPA Australia’s Business Investment Lead Gavan Ord said: “The research demonstrates the importance of new technology to business success.

“Companies that embrace a range of new technologies are observably more likely to be profitable and efficient.

“​It’s crucial for Australian businesses to embrace technologies that are appropriate for them as quickly as possible to ensure they keep pace in a tough business environment.”

The survey of 1,060 accounting and finance professionals also found that Australian businesses trail their Asia-Pacific counterparts when it comes to the uptake of AI.

Just 22 per cent of Australian businesses have adopted AI to a moderate to significant extent, compared with 41 per cent across the other markets surveyed.

One in three businesses – 34 per cent – said they have never used AI, compared to just 22 per cent across the Asia-Pacific.

The survey also found that of the businesses using AI, 76 per cent said their profitability increased last financial year, compared to 34 per cent that didn’t use AI.

Ord: “While the number of Australian businesses using AI grows, it’s not yet a day-to-day tool for most.

“However, local businesses are clearly behind the game in exploring ways to use AI to improve their efficiency and overall performance.”

While Australian businesses trail their Asia-Pacific counterparts in AI adoption and having digital strategies, they perform well when it comes to cybersecurity and data protection.

More than two-thirds of Australian respondents – 68 per cent – listed increased cybersecurity protection as their company’s top technology initiatives in the last year, compared to 51 per cent from the other markets.

CPA Australia’s recommendations for Australian businesses:

• Develop and implement a digital strategy focused on improving productivity and the customer experience.
• Invest in technology that turns quality data into actionable insights, such as AI and data analytics software
• Consider technology that can be used to meet sustainability goals, including technology that assists with ESG compliance
• Identify opportunities to enhance operational efficiency, lower costs and/or improve the customer experience through AI
• And prioritise and regularly review technology for its return on investment.

Picture: Gavan Ord