2024 AI Statistics in Australia: Trends, Insights, and Impact

In Australia, artificial intelligence (AI) is changing the way we live in big ways and small. Imagine shopping online and seeing suggestions that seem to know exactly what you need, or visiting a doctor who uses a computer to help diagnose health issues quicker than ever. 

This isn’t just happening in big cities like Sydney or Melbourne; it’s also reaching into remote areas where technology helps farmers keep an eye on their animals with drones.

AI isn’t just about robots and complicated computer programs. It’s about real improvements in our daily lives. Whether it’s helping businesses work better, making healthcare more efficient, or even changing how kids learn in school, AI is everywhere.

AI’s influence goes beyond our thinking. Economically, it’s a booming sector with significant growth projections. By the end of 2024, the AI market in Australia is expected to reach a value of AUD 4.51 billion. What’s more, it’s not slowing down anytime soon. From 2024 to 2030, the market is set to grow at an annual rate of 28.55%, culminating in a substantial increase to AUD 20.34 billion by 2030.

As I explore how AI is growing in Australia, I’ll look at what it means for everyone Let’s statistically explore the opportunities and challenges presented by this dynamic field in Australia. 

Navigating the Future: Key Global AI Statistics That Shape Our World

• Global AI Market Growth: From a value of approximately AUD 333.2 billion in 2023, the global AI market is forecast to surge to nearly AUD 1.02 trillion by 2030, achieving a compound annual growth rate of 17.3%.
• Contribution to Global GDP: By 2030, AI is poised to contribute an impressive AUD 21.59 trillion to the global GDP, an increase that represents 14% of the current combined economies of China and India.
• Boosts in Regional GDP: Significant economic uplifts from AI are expected, particularly in China with a 26% increase and North America with a 14.5% increase by 2030, together amounting to around AUD 14.74 trillion—nearly 70% of the global total impact from AI.
• Impact on Jobs: While AI might displace 85 million jobs globally by 2025, it is also anticipated to create 97 million new jobs, leading to a net gain of 12 million jobs.
• Advancements in Autonomous Vehicles: By 2030, about 10% of all vehicles are predicted to be autonomous, with the market for these vehicles expanding from just over 858,500 units to 50.5 million.
• Economic Impact of Generative AI: The influence of generative AI is expected to generate an economic output ranging from AUD 3.57 trillion to AUD 6.05 trillion across different sectors.
• Technology Adoption Trends: More than 75% of companies are expected to integrate AI, big data, and cloud computing into their operations within the next five years.
• AI in Business Today: Currently, more than 48% of businesses employ AI technologies to enhance their use of big data.
• Investment in AI Technology: Spending on IT products and services centered on AI is projected to increase by 26.5% by 2026, reaching over AUD 413.1 billion.

Looking at these global AI statistics, I can’t help but feel both awe and a bit of apprehension. The AI market’s projected growth to nearly AUD 1.02 trillion by 2030 really highlights just how much AI has woven itself into the fabric of our daily lives and industries. For me, it’s not just a bunch of numbers; it represents countless opportunities for innovation and improvement across all sectors. 

From my perspective, this isn’t just about financial metrics; it’s about the new and unexpected ways we might use AI to creatively solve old and new problems. these statistics not only illuminate the path AI is carving in our global landscape but also prompt a personal reflection on how we, as a society, are preparing for these vast changes. It’s a reminder of the responsibilities we hold to steer this technology towards the greater good of all.

Projected Market Size of AI in Australia by 2030

The market size of artificial intelligence (AI) in Australia is poised for remarkable growth. The AI market in Australia is expected to see an annual growth rate of 28.55% from 2024 to 2030, culminating in a market volume of AUD 20.34 billion by 2030. 

The growth from 2020 to 2025 shows a steady increase but is less steep compared to the growth from 2025 to 2030. This indicates an expectation of more rapid advancements and/or market adoption in the latter half of the decade.

• In a global comparison, the United States is projected to have the largest AI market, reaching AUD 70.22 billion in 2024.
• Digital technologies, including AI, are estimated to be worth AUD 441 billion to the Australian economy by 2028.
• The integration of automation technologies, including AI, could add an additional AUD 238 billion to AUD 840 billion annually to Australia’s GDP by 2030. 

Personal Perspective

From my point of view, these statistics aren’t just numbers—they’re a testament to the transformative power of AI. The projection of the global AI market reaching over AUD 20 billion by 2030 clearly indicates the technology’s accelerating adoption and increasingly crucial role across various sectors worldwide. 

For Australia, this means opportunities for growth and the need for thoughtful integration of AI into businesses and economies to maximize its benefits and address challenges like job displacement and ethical considerations. These projections make it clear that investing in AI and related technologies is crucial for staying competitive and fostering sustainable growth. 

AI Spending and Investment in Australia

Following AI statistics highlight several key areas of AI spending in Australia, showcasing impressive growth and investment across different sectors.

• Augmented Customer Service Agents: The spending for AI in customer service agents is around AUD 187.6 billion. This sector shows a compound annual growth rate (CAGR) of 25.0%, reflecting the increasing reliance on AI to enhance customer interactions and service delivery.
• Augmented Threat Intelligence and Prevention Systems: In 2022, spending in this critical area of cybersecurity reaches AUD 185.5 billion. With a CAGR of 24.7%, it underscores the vital role AI plays in fortifying data protection and threat analysis.
• Digital Assistants: These AI systems saw spending of AUD 133.0 billion in 2022. The growth rate here is a notable 25.5%, indicating robust adoption in automating personal and professional tasks through intelligent digital assistants.
• Program Advisors and Recommendation Systems: With an investment of AUD 132.2 billion in 2022 and a CAGR of 22.4%, this segment focuses on leveraging AI to guide decision-making and streamline processes across various industries.
• Smart Business Innovation and Automation: This sector, earmarked for the highest growth, has spending predicted at AUD 116.2 billion in 2022, with a CAGR of 29.5%. It highlights a strong trend toward integrating AI to drive innovation and efficiency in business operations.

• Australian investment in AI systems is projected to exceed AUD 3.6 billion by 2025, with a compound annual growth rate (CAGR) of 24.4% from 2020 to 2025.

From my perspective, these statistics not only illuminate the breadth and depth of AI investment in Australia but also signal a transformative shift in how businesses operate. The remarkable growth in Smart Business Innovation and Automation particularly resonates with me.

It suggests that businesses are not just adopting AI for incremental improvements but are fundamentally reshaping their operational landscapes for a digital future. This is an exciting indication that AI is moving from a supplementary tool to a central pillar in business strategy and operations, heralding new levels of efficiency and innovation.

AI Evolution: Tracking the Growth of Australian Businesses

• Australia Hosts 544 AI companies and is recognized for is significant contributions in AI research domain.
• The number of businesses in the Australian AI industry has grown by an average of 9.4% annually from 2018 to 2023.

• As of 2018, there were 1,465 startups in Australia, with 21% considering AI relevant to their services or products, marking a 6% increase from the previous year.

• The Australian government’s Responsible AI Adopt program is allocating AUD 17 million to help SMEs understand and adopt AI technologies.
• Businesses in Australia is expected to rate a revenue of AUD 361,315. 
• There is time savings of approximately 30% across all implemented AI initiatives.

From my viewpoint, these statistics highlight a transformative period ahead for Australia, driven by AI and related technologies. The growing number of AI companies and the significant uptake among large firms reflect a strong movement towards embracing AI capabilities, which isn’t just a trend but a fundamental shift in how businesses operate and compete.

The commitment shown by the Australian government through funding initiatives to support AI adoption in SMEs also suggests a proactive approach to ensuring that the benefits of AI are widespread and inclusive. This is not just about keeping up; it’s about leading in the digital age.

Overall, I would say,  it’s an exciting time to be involved in technology in Australia. The stats suggest a promising future, but they also underscore the need for strategic planning and action to harness the full potential of AI and other emerging technologies.

AI’s Ripple Effect: Transforming the Australian Workforce

Artificial intelligence (AI) is not just a technological advancement; it’s a catalyst for change that’s reshaping the Australian workforce. As AI technologies continue to evolve, their impact is felt across industries, altering job landscapes, creating new roles, and necessitating the development of new skills. Lets look at the key statistics highlighting the changing Australian workforce:

• A report from the Australian Computer Society (ACS) states that over 11.2 million employees, or 95% of the Australian workforce, will be impacted by critical technologies, including AI.
• By 2030, at least half of Australian businesses are expected to use these technologies, necessitating 1.8 million new tech skills.
• CSIRO estimates that Australia will need up to 161,000 new AI workers by 2030.

The critical need for a skilled workforce to keep pace with these technological advances presents both a challenge and an opportunity. It’s clear that education and workforce training will need to be a priority to meet the demands of tomorrow’s tech-driven economy.

Job Displacement Estimates

• Cisco has projected that by 2028, technology will lead to the displacement of 630,000 Australian workers, highlighting the significant impact of automation and AI across various sectors.

• Specifically, in the sectors of construction, manufacturing, and transportation, technology is expected to displace a combined total of 210,000 workers, indicating specific industries that may experience more pronounced job losses due to technological advancements.

Job Creation Through AI and Economic Impact

• Contrasting the job displacement figures, AI is anticipated to create a net gain in employment, with at least 12 million more jobs being created than displaced. This suggests that while AI and technology will disrupt current job markets, they will also open new opportunities and roles that may surpass the number of jobs lost.

• To effectively adapt to these changes, Australia will need at least 445,000 more tech-skilled workers. This requirement points to a need for 1.3 additional skills per existing worker to cope with the integration of these 10 critical technologies.
• The tech labor shortage could cost the Australian economy AUD 16 billion by 2030

Employee Engagement with AI Tools

• Generative AI technologies, like ChatGPT, could add up to AUD 115 billion annually to the Australian economy by 2030, according to a joint report from the Tech Council of Australia and Microsoft.

• The majority (83%) of employees have shared with their employers that they use generative AI tools at work, suggesting a high level of openness and integration of these tools in their daily tasks.
• There is a notable portion (42%) of employees who have not used AI tools at work, primarily because they do not see it as relevant to their job functions. This points to a potential gap in understanding or communicating the applicability and benefits of AI tools across different roles within organizations.

These statistics illustrate the profound influence that AI and other critical technologies are expected to have on the Australian economy and its labor market. The data not only reflects the challenges posed by these advancements but also emphasizes the opportunities for growth and innovation if the necessary skills and training are provided to the workforce. The strategic response to these trends will be crucial in leveraging the potential benefits while mitigating the risks associated with the tech-driven future.

AI Adoption Trends in Australia

• Deloitte reports that 9.5% of large Australian firms (those with over 200 employees) currently utilize AI. This compares to just 1.4% of all firms in the country.

• A significant 53% of Australian professionals are actively using or experimenting with generative AI in their work environments, a marked increase from 36% in 2023. 

Generational Adoption Rates

Adoption of generative AI technologies shows a distinct generational divide:

• Millennials: 63% adoption rate
• Generation Z: 57% adoption rate
• Generation X: 44% adoption rate
• Baby Boomers: 20% adoption rate

This indicates that younger generations are more likely to embrace AI technologies in their daily and professional lives.

• Deloitte’s research highlights that 58% of students are already utilizing generative AI technologies, pointing to the widespread use of AI tools in educational settings and potentially setting the stage for future professional applications.

Adoption rate by Businesses

• Interested but no plans to implement: Approximately 10% of the respondents indicated an interest in AI but currently have no plans to implement it.
• Planning to implement in the next 12 months: About 20% of the surveyed businesses are planning to implement AI within the next 12 months.
• Implemented, not expanding/upgrading: A significant portion, around 40%, have already implemented AI and do not have immediate plans to expand or upgrade their AI systems.
• Expanding or upgrading implementation: Nearly 25% of businesses are in the process of expanding or upgrading their existing AI implementations.
• Decreasing or removing implementation: A small fraction, around 5%, are decreasing or removing their AI implementations.

AI Adoption in Workplaces

• A substantial number of companies are exploring AI, with 35% of employees reporting that their organizations are investigating how to best deploy AI technologies.
• Despite the growing use of generative AI tools at work, only about half (52%) of the employees state that their company has established policies regarding AI tool usage. 
• An additional 34% mention that their companies plan to implement such policies, indicating a transitional phase in policy development to address the integration of AI tools.

These statistics collectively reflect a dynamic shift towards AI integration in various sectors of Australian society, with significant growth potential in healthcare. The enthusiastic adoption by younger generations and professionals suggests a future where AI technologies are central to both personal and professional activities.

Understanding of AI in Common Technologies Among Australians: Awareness and Literacy

Research by the University of Queensland and KPMG indicates that less than half of Australians are aware that common technologies they use incorporate AI. This lack of awareness extends to everyday applications widely used across various domains.

Specific Applications and Awareness:

• A significant majority of Australians (ranging from 53% to 73%) do not realize that AI is integral to common services:

• Product Recommendations: Services like Amazon and Netflix use AI to tailor product and content suggestions.

• Accommodation and Ridesharing: Platforms like Airbnb and Uber rely on AI to manage bookings, pricing, and logistics.

• Social Media: Popular platforms such as Facebook and Instagram employ AI to customize feeds, advertisements, and user interactions.

Higher Awareness in Interactive AI:

• Australians are more likely to recognize the use of AI in technologies that have a vocal or physical presence:

• Autonomous Vehicles: A high awareness rate, with 81% recognizing the use of AI.

• Virtual Assistants: 76% are aware of AI usage in technologies like Siri, Alexa, and Google Assistant.

• Social Bots and Smart Speakers: 69% and 68%, respectively, know that these devices operate using AI.

• Understanding of AI: Only 51% have heard about AI in the past year, and 61% report a low understanding of how AI is used, especially in applications like social media.
• Desire for Information: Despite low awareness, 86% of Australians express a desire to learn more about AI, indicating a significant gap that could be addressed through public AI literacy programs.

This data highlights a clear distinction in the public’s understanding of AI: Australians are more likely to recognize AI’s role in technologies that interact with them directly or have a tangible, observable presence. In contrast, AI’s role in less visible background operations like algorithmic content curation remains largely unrecognized. This suggests a need for enhanced education and transparency about AI’s pervasive presence in everyday digital tools to bridge the awareness gap.

Leading Industries in Australia 

According to data from Statista, the industries in Australia most serviced by AI firms include aerospace, defense, and security (50.6%), mining, energy, and resources (43.4%), and agriculture and healthcare (both at 33.7%). 

Australian Attitudes and Concerns About AI

Privacy and Transparency Concerns:

• Global Concerns: According to an Ipsos survey, 69% of Australians are nervous about AI, making them the most worried globally. However, 40% are excited about AI, lower than the global average of 54%.
• Protecting Personal Information: A government survey revealed that 73% of Australians consider protecting personal information very important for trusting government AI use. Another 19% think it’s important, and 8% chose ‘Others’, indicating mixed or indifferent sentiments.
• Transparency and Regulations: 67% of respondents find transparency about AI usage very important, and 66% value having regulations to provide protection.

• Trust and Safeguards: From a University of Queensland and KPMG Australia study, 40% of Australians trust AI in the workplace, and 35% believe there are adequate safeguards.
• Trust in AI Systems: Only 33% of Australians report willingness to trust AI systems, with 45% unwilling to share their data and 40% unwilling to trust AI outputs.

• Job Security Concerns: Most Australians (59%) disagree that AI will create more jobs than it eliminates, expecting advanced notice (93%), retraining opportunities (92%), and redeployment (89%) if their jobs are automated.

• According to Deloitte, 75% of Australian business and IT leaders are concerned about leaks of sensitive information, and 73% about errors or inaccuracies from AI.

These insights reveal a complex landscape where Australians are both hopeful and hesitant about AI. While there is clear enthusiasm for the potential benefits of AI in economic and professional domains, there is also significant concern about privacy, job security, and the need for robust regulations and AI literacy.

The Australian government and businesses may need to focus on enhancing transparency, regulation, and public education to address these concerns and harness AI’s full potential effectively.

Potential Economic Benefits: Future

• The Agbot II developed by the Queensland University of Technology could save the agricultural sector $1.3 billion annually by automating tasks like weed removal.
• The AI market within Australia’s healthcare sector is set to experience significant growth, projected to rise from $0.08 billion in 2022 to $1.78 billion by 2030. This represents an impressive compound annual growth rate (CAGR) of 46.72% over the period from 2022 to 2030.
• Productivity Growth: Automation technologies have the potential to increase productivity growth by 50 to 150%.

FAQs

Conclusion

The integration of artificial intelligence (AI) into the Australian workforce is undeniably transformative, presenting a complex mix of opportunities and challenges. As AI adoption grows, with projections indicating a significant economic impact, the need for a well-prepared workforce becomes more crucial than ever.

From the projected displacement of 630,000 jobs by technology by 2028 to the creation of 12 million new jobs by AI, it’s clear that the job market is undergoing a significant shift. 

The substantial growth in AI-related sectors, such as healthcare underscores the expanding influence of AI across various industries. While AI holds the potential to revolutionize the Australian workforce and economy, its successful integration depends on addressing the accompanying challenges.

By fostering a culture of continuous learning, enhancing regulatory frameworks, and prioritizing transparency and trust, Australia can harness the full potential of AI to drive sustainable growth and innovation.

References