Australian businesses invest in AI growth

The survey, which included insights from over 200 senior executives and business leaders, now identifies AI as the leading priority for both short- and medium-term business strategies in Australia. Notably, while more than 70% of respondents consider AI a prime opportunity for productivity and growth, only 46.5% have managed to achieve tangible productivity improvements since their AI adoption.

Mallesons Corporate M&A Partner, Rhys Casey, commented on the survey results saying "Australian businesses are betting heavily on AI as a means of addressing the productivity challenge, but the honeymoon period is ending." Many organisations have shifted from viewing AI as a novelty to seeking measurable returns for their significant investments, with a growing imperative for accountability. Despite broad concerns about capital allocation, organisations remain committed to AI investments, but are increasingly focused on identifying practical, enterprise-level use cases.

The survey indicates a remarkable shift in organisational attitudes towards AI's role in workforce dynamics. While concerns about AI-driven job losses have been a prevalent topic in public discussions, the survey reveals that 60.2% of respondents are not pursuing AI as a tool for headcount reduction. Instead, business leaders are focused on enhancing productivity and overall performance while anticipating long-term transformations in their workforce.

Moreover, the importance of good governance in AI implementation is evident, as 55% of organisations have enhanced their board or senior leadership capabilities over the past year. Meredith Paynter, another partner at Mallesons, noted that "What's emerging is a much more hard-headed approach to AI." The survey also reported a significant increase in organisations developing comprehensive AI governance frameworks, with 21.6% now having such measures in place, compared to 13.5% in 2025.

Ultimately, the Mallesons 2026 Directions Report underscores the complexities and evolving nature of AI in Australian businesses. As enterprise leaders navigate the competitive landscape, the organisations that can effectively integrate technology, governance, and workforce capability will likely be the ones to realise the full potential of AI—and achieve meaningful productivity dividends in the long run.