Australian businesses lag in AI integration despite 88% adoption, CPA Australia finds

Australian businesses are increasingly adopting artificial intelligence (AI), but few have integrated the technology deeply across their operations, raising concerns about their ability to translate investment into productivity and business growth.

CPA Australia's 2026 Business Technology Report found that 88% of Australian businesses use AI, yet only 10% have deeply embedded it across their organisations. 

The findings, based on a survey of 1,679 accounting and finance professionals across Australia, Hong Kong, Malaysia, Chinese Mainland and Singapore, show that Australia recorded the lowest level of broad AI integration among the markets surveyed.

CPA Australia Business and Investment Lead Gavan Ord said, “Australian businesses have largely adopted AI, but many are still only scratching the surface of its potential."

“Successful businesses across the region are increasingly integrating AI into core operations, while many Australian organisations remain in the early stages of that journey,” he added. 

“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,” also said.

“If Australia is serious about lifting productivity and improving economic growth, businesses must move beyond AI experimentation and focus on embedding it more deeply into their operations,” further said.

Australia trails regional peers in advanced AI adoption

The report found that Australian businesses are also behind several regional counterparts in adopting more advanced AI technologies, including systems capable of carrying out complex tasks with limited human intervention.

Only 28% of Australian businesses reported using agentic AI systems, compared with 58% in the Chinese Mainland, 49% in Hong Kong and 47% in Singapore. 

The adoption of custom-built AI tools was also lower in Australia, at 36%, against 61% in the Chinese Mainland.

The findings suggest that AI adoption alone may not be enough to deliver meaningful business outcomes, with the extent to which organisations integrate the technology into their operations emerging as a key differentiator.

Across all markets surveyed, 63% of businesses reporting increased profitability said AI was widely used across several business functions or deeply embedded throughout the organisation. 

This compared with 50% of businesses whose profitability remained unchanged 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 Australia's productivity challenge, but only if businesses invest in the capability, governance and processes needed to use it effectively,” he elaborated.

AI governance remains a concern for businesses

Alongside the integration gap, the report identified shortcomings in AI governance, with nearly three in 10 organisations providing little or no guidance or oversight on the use of the technology.

Privacy, security, overreliance on AI and reduced human oversight were also identified as significant barriers to deeper adoption.

The findings highlight a challenge for business leaders seeking to scale AI use while ensuring that employees understand how to use the technology responsibly. 

For HR leaders, this also raises questions about workforce capability, employee guidance, training and the governance structures needed to support AI-enabled work.

“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,” Ord added.

Cybersecurity and workforce capability in focus

“Technology should be helping to lift productivity, but many Australian businesses are still struggling to realise its full benefits,” said Ord.

“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.”

Australian businesses are also preparing to increase investment in technology capabilities, with survey respondents the most likely among the markets examined to expect greater use of cybersecurity software over the next 12 months.

The report also points to expected growth in the use of data analytics and AI-enabled workplace software as businesses look to move beyond experimentation and integrate technology more extensively into their operations.

CPA Australia has called on governments to expand the scale and scope of existing digital support programmes and workforce capability initiatives to help businesses make better use of AI.