A substantial 41% of Australian companies are currently prioritising concerns related to data management and quality as they seek to implement artificial intelligence (AI) projects. This insight emerges from the latest findings of the Hitachi Vantara State of Data Infrastructure Survey, which highlights significant trends in AI automation across various business sectors in Australia.
The survey, which collected responses from 1,200 C-level executives and IT decision-makers across 15 countries, reveals that a majority—51%—of Australian IT leaders regard AI as an essential tool for their organisations. This is notably higher than the global average of 35%. Furthermore, 36% of Australian CEOs categorise AI as 'a revolution', contrasting with 30% of CEOs globally. However, despite the growing acknowledgment of AI's importance, only 28% of local businesses see AI as relevant for uncovering new business opportunities.
Respondents identified 'good project management and governance' as critical for the successful execution of AI projects, with 47% highlighting this as a key element. A further 35% emphasised the importance of high-quality data. The demand for data storage solutions is projected to increase drastically, with an expected growth of 137% by 2026. This surge indicates potential challenges for businesses in effectively storing, managing, and tagging data needed for AI functionalities.
Despite the focus on data security, a significant number of Australian businesses appear to be overlooking the importance of data quality, sustainability, and infrastructure management. Alarmingly, only 44% of respondents indicated that data is readily accessible when needed. The survey points to notable deficiencies in data management practices—41% of respondents do not utilise data tagging for visualisation, just 36% are working to improve training data quality, and a mere 23% regularly review datasets for accuracy.
Concerns about return on investment were prevalent, with 45% of those implementing AI stating this as a chief consideration, alongside deployment speed (44%) and costs associated with security (42%). There is widespread apprehension about the consequences of significant data loss, as 76% of participants acknowledged the potential impact, alongside similar concerns regarding the misuse of AI tools by hackers.
The survey found that 25% of Australian IT leaders are addressing the challenge of AI's inability to explain its decision-making processes by establishing AI governance frameworks, a figure lower than the global average of 36%. Furthermore, only 33% are actively improving data quality for precise model training, compared to 38% globally. A focus on sustainability in AI strategies remains low, with only 28% prioritising this area.
George Dragatsis, ANZ Chief Technology Officer at Hitachi Vantara, elaborated on the dual nature of AI in his comments, stating, "The survey makes it clear that during 2025, AI will stand out as both an opportunity and a challenge for Australian businesses.” He outlined that while AI technology can boost innovation and efficiency, it also presents vulnerabilities, including the risk of generating flawed code through automation. He stressed the importance for businesses to handle extensive data sets with a focus on data resilience, business continuity, and energy efficiency, while maintaining rigorous oversight.
As organisations embark on AI initiatives, the survey underscores the necessity of third-party support. Key areas where expert assistance is required include the provision of secure and reliable hardware, efficient data storage solutions, and resilient software designed to protect against cybersecurity threats.
A noticeable skills gap has emerged, with 54% of leaders gaining AI competencies through trial and error, while 27% rely on self-directed learning. In light of this challenge, 68% of Australian respondents indicated they are engaging external consulting experts to successfully navigate their AI projects.
Nathan Knight, ANZ Managing Director at Hitachi Vantara, commented on the value of partnering with experienced professionals: "Tapping into the experience of a strong partner can help Australian enterprises to make the right, and rightsized, investment decisions when it comes to setting up AI and data infrastructure." He further elaborated on the importance of an experienced partner in data preparation for AI applications, underscoring the need to standardise formatting and cleanse data to ensure protection and security for AI models.
Source: Noah Wire Services