A new report from KPMG indicates that a significant number of Australian technology leaders are grappling with the rapid pace of change in the industry, impacting their ability to make informed technology investment decisions.

The KPMG Global Tech Report 2024 surveyed 2,450 executives across 26 countries, including 138 from Australia, highlighting that 81% of Australian tech executives find it challenging to keep up with technological advancements. Additionally, 76% noted that their roles have undergone substantial changes over the last two years.

With a focus on various technology domains, Australian organisations are particularly investing in Everything-as-a-Service (XaaS) and artificial intelligence, with respective figures of 83% and 66% indicating these as priority areas over the next year. Decision-making processes for these investments largely rely on external guidance and proof-of-concept testing, with 95% and 92% adoption rates, respectively.

The report categorises “high-performing” organisations as those more inclined to incorporate customer feedback into their investment strategies, showing they are 22 percentage points more likely to do so than other companies.

Guy Holland, Partner at KPMG Australia and global leader of the KPMG International CIO Centre of Excellence, noted: “Tech executives feel they are struggling with the pace of change – leading to the natural fear that they may be falling behind their competitors. This FOMO can lead to misguided investment decisions that may prove both risky and expensive, potentially increasing the burden of technical debt on organisations. This seems especially relevant when 69% of Australian organisations experience disruptions to business-as-usual on a weekly basis due to flaws in foundational IT systems, compared to a still significant 57% globally.”

The study found that 70% of Australian tech leaders consider AI a transformative technology. Despite this, only 28% report successful AI deployment at scale, even as 74% say AI has improved organisational productivity. Encouragingly, 87% of organisations that have adopted AI claim to have already generated measurable value from these initiatives.

Concurrently, 87% of Australian companies have seen profit increases due to technology usage, highlighting a 25 percent point rise in respondents achieving higher profits compared to 2023. Moreover, 55% reported profit boosts exceeding 10% following digital transformation in the past two years.

Notwithstanding these gains, challenges persist. The study shows 82% of executives foresee AI posing operational challenges, while 76% use but lack confidence in leveraging customer feedback effectively for tech decisions. Governance issues and cybersecurity or privacy concerns were cited as significant barriers, with 39% and 36% of companies respectively, identifying these as hurdles to technological progress.

Comparatively, Australian organisations show similar levels of technological maturity to global counterparts, with a 12 percentage point increase in high-maturity levels observed between 2023 and 2024, defined by an active progression toward business goals and strategic adaptation.

Emphasising effective strategies, Guy Holland further commented: “The key to tech success is basing investment decisions on genuine value, drawing on data insights, prioritizing resilient solutions, and scaling with confidence. When implementing new technology, tech leaders should look to align stakeholders around a clear definition of success that cascades into a set of tangible metrics. They should also remember that innovation is not restricted to new technology – in a fast-changing technology landscape, it’s vital to explore new ways to collaborate, co-invest and share risk with external partners.”

The KPMG report underscores the balance that technology leaders must strike between speed, security, and value to thrive in an evolving digital landscape.