AI trends and economic shifts poised to reshape Australian businesses

Report stressed need for increased investment in tech and workforce development

AI trends and economic shifts poised to reshape Australian businesses

Technology

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Artificial intelligence (AI) is anticipated to play a central role in shaping Australian business strategies in 2025, according to the latest 2025 Australian Tech Leaders Survey from the Tech Council of Australia and Datacom.

The report highlighted AI’s potential to enhance operational efficiency and create opportunities across various industries, as businesses increasingly integrate this technology into their processes.

AI deemed most significant opportunity for business growth

The survey found that one-third of respondents identified AI as the most significant opportunity for business growth in 2025.

Datacom Australia managing director Laura Malcolm noted that this emphasis on AI signals a key development for Australian businesses.

“It is a significant marker of where we are in our AI journey that Australian businesses expect that in 2025 the greatest opportunities will come from using technologies – like AI and automation – to drive operational efficiencies,” she said.

She also emphasised the importance of deploying AI responsibly to boost productivity while allowing employees to focus on more meaningful tasks.

“The responsible deployment of generative AI tools and solutions has the ability to enable productivity gains and create space for our teams to focus on the more fulfilling aspects of their work,” Malcolm said.

How technology reshapes the business landscape

Commenting on the latest findings, Tech Council CEO Damian Kassabgi said that the annual survey offers industry leaders a platform to share their perspectives on how technology is reshaping the business landscape.

“While 2024 was a big growth year for AI, there is huge potential for businesses to further embrace AI to work smarter and boost productivity,” he said.

He added that the economic impact of AI could be transformative, with the potential to create 200,000 jobs and add $115 billion in value to Australia’s economy by 2030, a critical factor for addressing the nation’s declining productivity levels.

Economic concerns weigh on tech sector optimism

While AI and digital transformation remain key priorities, the survey also underscored concerns about economic uncertainty and productivity challenges.

More than 90% of respondents expressed concern that Australia’s productivity decline is not being adequately addressed, and 39% identified economic uncertainty as the top threat to tech companies in 2025.

Key findings of the survey

  • Leading tech trends: AI was cited as the defining technology for 2025 by 67% of respondents, followed by cybersecurity (17%) and sustainability-focused technologies (7%).
  • Shifts in priorities: Business leaders are now focusing on operational efficiency and growth, rather than talent acquisition, which was a key concern in 2024.
  • Skills shortages: 16% of respondents identified addressing local workforce skill gaps as a priority, up from 11% in the previous year.
  • Environmental, social, and governance (ESG) goals: While 85% of companies have an ESG strategy, nearly 40% said cost pressures hinder their ability to meet these goals.
  • Economic uncertainty: This was identified as the most significant risk to organisations (39%), followed by skills shortages within teams (32%).

Malcolm stressed the need for increased investment in technology and workforce development.

“There is a strong consensus that as a country we are not doing enough to tackle our productivity challenges and that greater tech investment, tech adoption, and skills training would help to reverse our falling productivity,” she said.

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