Australia & NZ lag on deep AI integration, CPA says

CPA Australia has released research showing that 88 per cent of businesses in Australia and New Zealand use artificial intelligence, but only 11 per cent have deeply embedded the technology across their organisations.

The findings place Australia and New Zealand at the bottom of the six Asia-Pacific markets surveyed for broad AI integration, despite widespread use.

The report, based on a survey of 1,679 accounting and finance professionals across Australia, New Zealand, Chinese Mainland, Hong Kong, Malaysia and Singapore, points to a gap between adoption and operational use. While many organisations have introduced AI tools, fewer appear to be integrating them into workflows, decision-making and core business processes.

Gavan Ord, Business and Investment Lead at CPA Australia, said the figures suggest many employers are still at an early stage.

"Australian and NZ businesses have largely adopted AI, but many are still only scratching the surface of its potential," Ord said.

"Successful businesses across the region are increasingly integrating AI into core operations, while many Australian and NZ organisations remain in the early stages of that journey.

"The businesses seeing the greatest benefits are integrating AI into workflows, decision-making and core business processes rather than limiting its use to standalone tasks such as drafting emails.

"If Australia and New Zealand are serious about lifting productivity and improving economic growth, businesses must move beyond AI experimentation and focus on embedding it more deeply into their operations."

Regional gap

The survey found Australia and New Zealand also trailed regional peers in the use of more advanced forms of AI. Just 28 per cent of respondents in the two markets said their organisations use agentic AI systems that can complete multi-step tasks with minimal human prompting.

That compares with 58 per cent in the Chinese Mainland, 49 per cent in Hong Kong and 47 per cent in Singapore. Use of custom-built AI tools was also lower in Australia and New Zealand, at 37 per cent, compared with 61 per cent in the Chinese Mainland.

CPA Australia linked broader AI integration with better profitability outcomes across all markets covered by the research. Among businesses that reported increased profitability, 63 per cent said AI was widely used across several business functions or deeply embedded throughout the organisation. That compares with 50 per cent among businesses whose profitability stayed flat or declined.

"The message from the data is clear: AI adoption alone isn't enough. The real benefits come when AI becomes embedded in day-to-day operations, helping businesses improve productivity, efficiency and decision-making," Ord said.

"AI has the potential to make a meaningful contribution to the productivity challenge facing Australia and New Zealand, but only if businesses invest in the capability, governance and processes needed to use it effectively."

Governance concerns

The report also identified a governance shortfall. One in four organisations said they provide little or no guidance or oversight on how AI is used, even as concerns remain around privacy, security, overreliance on automated systems and reduced human oversight.

Ord said the speed of adoption had outpaced the development of internal controls in some businesses.

"Many organisations have adopted AI faster than they have developed the governance frameworks needed to manage it effectively. Strong governance is essential to managing risk, building trust and ensuring businesses realise the long-term value of their AI investments," he said.

The research suggests cybersecurity remains a related priority as businesses become more dependent on AI and data. Respondents in Australia and New Zealand were the most likely among the surveyed markets to expect higher use of cybersecurity software over the coming year.

Businesses in the two countries also expect further growth in the use of data analytics and AI-enabled workplace software. According to the findings, 56 per cent anticipate increased use of data analytics, 49 per cent expect more AI-enabled workplace software and 39 per cent foresee greater use of cybersecurity tools.

Policy focus

The findings come amid wider debate over whether digital investment is translating into stronger productivity growth in Australia and New Zealand. CPA Australia said governments should expand digital support programs and workforce capability initiatives to help businesses move from trial use of AI to deeper integration.

Ord said better use of technology depends on how organisations embed it into daily operations rather than on headline adoption rates alone.

"Technology should be helping to lift productivity, but many Australian and New Zealand businesses are still struggling to realise its full benefits," he said.

"Governments should therefore prioritise measures that support AI integration, build workforce capability and help businesses translate technology investment into productivity gains.

"The next phase of AI will not be defined by how many businesses use it. It will be defined by how effectively and deeply businesses integrate it into the way they operate, make decisions and create value."