Australian industry has increased its use of technology to boost productivity and has asked for regulatory certainty as it adopts Artificial Intelligence and makes investments towards net zero, an Ai Group report reveals.
Eighty-four per cent of 182 businesses, with 27,271 employees, said they were adopting technology as an essential part of developing new businesses, managing workforce constraints and making themselves more competitive. Their primary motivation was to increase productivity.
“This is a welcome sign as the country tries to increase productivity, which is the key to unlocking better living standards and higher wages,” Innes Willox, Chief Executive of the national employer association Australian Industry Group, said.
Fifty-two per cent of businesses, surveyed in August and September, say they are adopting AI to drive productivity and 45% said they were adopting new technology to transition to net zero.
The biggest inhibitors of technology investment are workforce capability and regulatory gaps. The group had collective revenue of $14 billion in 2023.
“We are also seeing a larger number of businesses recognise AI as part of their productivity pathway. But they are concerned about having access to the workforce they need, and are nervous about what they see as immature AI regulations which are needed to provide investment confidence.
“A lack of certainty around energy policy settings is also holding net zero technologies back, as businesses cannot properly cost and commit to investment decisions.
“Without the right workforce and reliable standards, businesses won’t have the certainty they need to feel protected in this increasingly risky digital world,” Mr Willox said.
The report, Technology Adoption in Australian Industry: Commercial, Workforce and Regulatory Drivers, is being launched in Newcastle by Minister for Industry and Science, Ed Husic, at local engineering and manufacturing firm, Varley Group.
Victor Ugarte, Varley Group CEO – Defence, said the company embraced advanced technologies to make the company more productive and competitive, here and overseas.
“Minister Husic’s visit to Varley presents an invaluable opportunity to showcase how Varley Group is embracing advanced technologies to drive productivity and enhance our competitiveness in both domestic and global markets,” Mr Ugarte said.
“With a legacy of 138 years in engineering excellence, this commitment is deeply embedded in our culture. We are actively integrating advanced technologies across our operations, products, and system solutions to create smarter, more resilient outcomes. This includes implementing cutting-edge ICT solutions within our specialised vehicle fleets to enhance connectivity and intelligence, as well as utilising advanced robotics in manufacturing to boost efficiency and maintain high production standards.
“Varley Group’s dedication to technological advancement goes beyond productivity gains; it reflects our commitment to sustainable practices. By fostering a culture of innovation and investing in transformative technologies, we are well-positioned to meet our customers’ evolving needs and contribute to the growth and resilience of Australian industry,” Mr Ugarte said.
The Report is available for download here:
