However, Australian companies are lagging in productivity gains from automation
Australian organisations are taking the responsible approach to AI adoption compared to their global counterparts, but are lagging when it comes to productivity, according to a new report.
New global findings fromKPMGrevealed that Australia is leading the charge when it comes to AI governance and improving cybersecurity.
However, it is falling behind when it comes to productivity gains from automation, as well as advanced analytics, forecasting, and real-time insights.
Australia is demonstrating strong leadership in responsible AI adoption and risk management, said KPMG Australia chief technology officer John Munnelly.
According to the report, 31.6% of firms are implementing policies to ensure trustworthy AI, much higher than the global average of 26.3%.
Another 37.8% of firms are also strengthening their cybersecurity and data protection, above the global average of 25.9%, and the highest among the six markets covered in the report.
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, Munnelly said
The findings are in line with the recently released Australian Responsible AI Index 2025, which found that more organisations are in the Leading stages ofResponsible AI implementation.
According to the report, the most implemented Responsible AI practices include:
Maintained comprehensive documentation of the AI development process, including data sources, model architecture, training procedures, and deployment steps (49%)
Developed supporting materials to explain the AI inputs and decision-making processes (42%)
Reviewed training data and AI algorithms for potential bias (41%)
Informed relevant stakeholders, including employees and customers, about the use of AI and AI-generated content in products and/or services (41%)
Provided the necessary information to end users about the use of their personal data to ensure it is processed in a fair and transparent manner (40%)
Productivity from automation lags
Despite the responsible approach to AI adoption, employers in Australia are falling behind when it comes to productivity gained from automation, according to the KPMG report.
Just 34.7% of firms reported productivity gains by automating workflows, the lowest among the six markets covered in the report, and significantly lower than the global average of 42.3%.
Only 38% of firms in Australia are also taking advantage of advanced analytics and real-time insights to enable faster and better decision-making.
There is still a lot to do when it comes to productivity, and Australia has all the right foundations to take advantage of what's coming. It's now up to us to seize those opportunities, Munnelly said.
Australia has been suffering fromstagnating productivity performance, with AI expected to deliver gainsabove 2.3% in the next decade, with labour productivity growth estimated at 4.3%.
AI is the biggest lever for productivity change we have. It's up to us to pull it, sensibly, and be trusted in the process, Munnelly said.
There are enormous productivity benefits with AI, but trust is what really matters.
