
Reality check: Lenovo’s enterprise predictions for 2025 under the microscope
Organisations in Australia and New Zealand are accelerating their adoption of artificial intelligence (AI), data centre infrastructure, and sustainable practices while maintaining a strong focus on cybersecurity. This is according to a mid-year review of technology predictions originally made by Kumar Mitra, Managing Director and Regional General Manager, CAP & ANZ, Lenovo Infrastructure Solutions Group, for 2025.
AI adoption and ROI
The latest data reveals that AI investment in Australia and New Zealand (ANZ) has increased fourfold over the year, outpacing the Asia-Pacific average of a 3.3-fold rise. However, despite this surge in spending, 58% of organisations in the region are still in the planning or evaluation stages of AI deployment. The primary barrier to further adoption is the challenge of demonstrating a clear return on investment (ROI). While generative AI accounts for 38% of AI spend in ANZ, most enterprises are opting for a strategic, long-term approach that aims to ensure measurable and sustainable outcomes from their investments.
Cybersecurity focus
The review confirms that cybersecurity has become a board-level topic driven by rising threat levels and stricter regulation. Implementation of new Australian laws, including mandatory reporting for ransomware payments and the establishment of a Cyber Incident Review Board, has re-emphasised the need for robust cyber defences. The ongoing 2023–2030 Cyber Security Strategy underpins cross-sector collaboration and targets increased resilience and faster incident response. Enterprises are responding by investing in layered defences and reinforcing governance to counter increasingly complex, AI-enabled attacks.
Sustainability drives infrastructure decisions
Sustainability has become central to infrastructure strategy as energy consumption rises due to expanding AI workloads. Industry players are prioritising energy-efficient systems not only for compliance but as a lever for competitiveness and resilience. An example cited is Sharon AI's Supercluster – developed with Lenovo – which aims to be one of the nation's most energy-efficient AI deployments. Organisations are looking beyond compliance, considering the broader performance and competitive advantages associated with sustainable infrastructure.
There is a continuation of the trend towards hybrid and multi-cloud AI infrastructure across the region. Forty-five percent of organisations in ANZ now favour on-premises or hybrid AI environments, with only 38% remaining reliant solely on public cloud. Edge computing is also experiencing increased uptake in industries such as mining, manufacturing, healthcare and retail, where real-time data processing at the source is essential. One application is Truis's use of Lenovo ThinkEdge servers to deploy in-store AI and analytics, aimed at optimising customer experiences and streamlining operations.
Data centre growth
Expansion in data centre infrastructure is expected to continue rapidly, with Australia already among the top five global data centre hubs by size. Current projections indicate 250 operational data centres with a need for roughly 175 additional facilities by 2030 to keep pace with demand, particularly for AI-driven services. Investment is being driven mainly by hyperscale providers and supported by governmental initiatives to fast-track approvals and establish innovation zones.
The verticalisation of large language models (LLMs), where they are tailored for specific sectors, is beginning to take hold in the region. More than half of APJ organisations are now fine-tuning and integrating models with their internal data instead of building from scratch, particularly in areas such as IT operations, software development, and cybersecurity. While broader deployment is expected later in the year, the initial adoption signals significant momentum.
Agentic AI, defined as AI agents capable of independent action and decision-making, is moving from pilot projects to early deployment. Interest is strong, with 69% of ANZ executives prioritising agentic AI and 38% already testing solutions. Lenovo reports practical benefits including up to eight times faster content creation and a 50% improvement in customer service efficiency from its Hybrid AI Advantage with NVIDIA partnership.
The ongoing growth in AI and digital technology continues to place pressure on skillsets, with 45% of Asia-Pacific enterprises reporting difficulty in recruiting AI talent. Investment in upskilling and internal training remains a challenge and an area of focus for organisations aiming to close the gap between ambitions and practical implementation.