Australian firms prioritise AI safety but miss productivity gains
Australian companies are adopting AI more cautiously than global peers, focusing on governance and trust rather than productivity improvements, according to a KPMG report released this week.
The findings reveal a split strategy: Australia leads in responsible AI practices but lags significantly in extracting business value from automation.
Strong on governance, weak on output
Just 34.7% of Australian firms reported productivity gains from automating workflows-the lowest among six markets studied and well below the global average of 42.3%. Similarly, only 38% are using advanced analytics and real-time insights to speed up decision-making.
The contrast with governance is stark. Some 31.6% of Australian firms have implemented policies ensuring trustworthy AI, compared to 26.3% globally. Another 37.8% are strengthening cybersecurity and data protection measures, the highest rate across all markets surveyed.
John Munnelly, KPMG Australia's chief technology officer, said: "Australian businesses are much more conscious about trust and the responsible use of AI, compared to businesses around the world, and that's what sets us apart."
What responsible AI looks like here
Australian organisations are implementing practical safeguards:
- 49% maintain comprehensive documentation of AI development, including data sources and training procedures
- 42% have created materials explaining AI decision-making processes
- 41% review training data and algorithms for bias
- 41% inform employees and customers about AI use in products and services
- 40% provide transparency to end users about personal data processing
The productivity problem
Australia's cautious approach has a cost. The country faces stagnant productivity performance, with AI expected to deliver gains above 2.3% annually over the next decade.
Munnelly said: "There is still a lot to do. Australia has all the right foundations to take advantage of what's coming. It's now up to us to seize those opportunities."
For HR leaders, the gap signals an opportunity. Organisations that combine responsible AI practices with workflow automation could unlock productivity gains while maintaining the trust-focused approach that distinguishes Australian firms.
The AI Learning Path for CHROs covers how to balance AI implementation with workforce impact-critical for HR teams navigating this gap between caution and capability.
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