Australian firms adopt AI faster than governance rules

Konica Minolta Australia has released research showing that 83 per cent of Australian organisations have adopted artificial intelligence in at least one area, while only 21 per cent have a formal AI governance or policy framework.

The findings are based on a survey of 305 IT and business decision-makers in Australia and form part of a research series produced with analyst firm Omdia.

The figures point to a mismatch between AI adoption and the internal rules, training, and information management practices needed to support it. Organisations are using AI for analytics and reporting, search and knowledge management, workflow automation, customer engagement, and document processing, but many still face fragmented information and system integration issues.

Only 17 per cent of organisations surveyed provide structured AI training or data literacy programs, leaving many businesses to introduce AI tools without formal support for the staff expected to use them.

Governance gap

The research found that 40 per cent of Australian organisations identified information spread across platforms and departments as their biggest information management challenge. This fragmentation can affect how effectively AI systems access and use underlying data.

It also linked information management issues to productivity. Most employees spend between one and five hours a week searching for information, which Omdia estimated amounts to roughly two to four working weeks per employee each year.

Businesses nevertheless see a financial case for improving data and governance practices. The survey found that 57 per cent expect better information management, data governance, and AI use to reduce operating costs, while 51 per cent expect productivity gains.

Privacy and security concerns remain the most commonly cited barriers to AI adoption, identified by 49 per cent of respondents. Integration with existing systems was also a significant obstacle, reflecting the difficulty many organisations face in connecting data across different platforms and environments.

Dr Giovanni Forero, Intelligent Information Management Team Lead, Konica Minolta Australia, said, "Many organisations have moved quickly to adopt AI; however, the information governance foundations needed to support it have not always developed at the same pace. That gap creates risk because AI depends on information that is accurate, accessible, appropriately governed, and used by people who understand how to work with it safely and effectively.

"AI readiness starts with information readiness. Organisations need to understand what information they hold, where it sits, who owns it, and how it should be governed. Getting those foundations right can help organisations use AI with greater confidence while also improving how information is accessed and used across the business."

His comments underscore a central theme in the findings: AI projects depend on the quality, accessibility, and oversight of the information beneath them.

Training shortfall

The study suggests workforce preparation is lagging as AI tools spread into day-to-day operations. With fewer than one in five organisations offering structured AI training or data literacy programs, businesses may be relying on informal learning while deploying systems that affect how employees find information, complete tasks, and interact with customers.

Omdia said the issue should be seen as both a technology and data management challenge. Trevor Clarke, Chief Analyst, Omdia, said, "AI is already being used across a wide range of business functions; however, every AI project is also a data project. Organisations need to be able to find, integrate, govern, and securely access the information that sits underneath these tools.

"The research also shows a gap around AI and data literacy training. Organisations need to support technology adoption with change management and training, particularly when new tools change the way people work, to get the outcomes they expect."

The findings also suggest a gap between how organisations assess their own readiness and the obstacles they continue to report. Some appear confident in their governance and data management arrangements despite ongoing concerns about fragmented information, privacy, security, and integration.

Brittany Miller, Product Marketing Manager - Services and Solutions, Konica Minolta Australia, said, "The research highlights a contrast between organisational confidence and formal readiness. Many organisations believe their information governance and data management practices are sufficient, despite continuing to report challenges around fragmented information, system integration, privacy, security, and workforce impacts."

The data adds to a broader debate in Australia about whether the spread of AI in workplaces is being matched by investment in governance, staff training, and information controls. In this survey, adoption is already widespread, but formal structures remain far less common, with governance frameworks in place at only 21 per cent of organisations and structured training offered by 17 per cent.