Most Australian CEOs Adopting AI for Business Strategy

Research from PwC finds one-third of Australian business leaders believe GenAI adoption has led to increased revenue and profitability over the past year. 

By Maggie Mancini

Australia’s business leaders are optimistic about the economic outlook, with 47% expecting global growth to increase over the next 12 months, up from 37% last year, according to PwC’s Annual Global CEO Survey – Australian Insights. The report surveyed 116 CEOs in Australia. Of those, 41% expect to increase headcount over the next year.  

While leaders are optimistic about the global economy, inflation remains a key threat, with almost a third (28%) of Australia’s surveyed CEOs feeling exposed to inflation in the next 12 months. The survey also reveals that while Australian CEOs have a higher degree of confidence in the future viability of their businesses, they are falling behind global peers when it comes to realising the benefits of technological disruption.  

Nearly three in four (74%) leaders are confident their business will survive the next decade if it continues running on its current path, compared to 55% globally. Nearly one-third (30%) of Australian companies have started competing in at least one sector in the last five years—with 20% noting this has represented over 20% of company revenue over this period.  

Of CEOs surveyed in Australia, most (88%) say AI adoption is important to achieving their company’s business strategy in the next three years. Globally, CEOs report seeing efficiency gains in their employees’ time over the last 12 months. Around one-third say GenAI adoption has delivered an increase in revenue (32%) and profitability (34%) in the past year.  

Those impacts are less significant among Australia’s business leaders, with 14% of CEO’s directly connecting GenAI to increased profitability, and just 10% to revenue increase. This difference may reflect a lower level of local AI adoption and earlier stage of maturity. 

Across the board, trust in AI remains a hurdle to more widespread adoption. Only a third of all CEOs said they have a high degree of trust in embedding the technology into key processes in their company.