Australian organisations are accelerating their adoption of artificial intelligence (AI) as they navigate a global push for innovation. Despite this enthusiasm, many entities in both the private and public sectors struggle to implement AI effectively. A recent study by the Massachusetts Institute of Technology (MIT) revealed that a staggering 95 percent of generative AI pilots fail to deliver meaningful returns on investment or scale effectively. Although the AI market in Australia is projected to reach a value of AU$9.41 billion by the end of the year, many local organisations remain entrenched in what some describe as “pilot purgatory.”
Addressing Implementation Challenges
Research conducted by Appian highlights significant challenges within the healthcare sector, where 60 percent of organisations are currently piloting AI or conducting small-scale trials. In stark contrast, only 12 percent have fully integrated AI into multiple care or administrative functions. This discrepancy underscores a critical issue: organisational leaders must recognise that the challenges associated with AI implementation stem not from the technology itself but from how it is integrated into existing systems.
Many organisations approach AI as if it were a simple plug-in solution, introducing new tools into outdated workflows without addressing underlying issues. This results in increased complexity, employee dissatisfaction, and minimal measurable improvements. The failure of AI projects often lies not in the inadequacy of AI models but in the fragmentation of processes. When operations rely on disconnected data, legacy systems, and manual transitions, even the most sophisticated algorithms struggle to create order and efficiency.
Focusing on Outcomes Over Technology
Successful organisations begin their AI journey by clearly defining the problems they aim to solve rather than jumping straight into technology implementation. They identify friction points in their processes and then assess how AI can help achieve their desired outcomes. While many companies are focused on superficial applications like chatbots, the true transformation occurs in less visible areas—using AI to enhance back-office functions such as document processing, claims management, onboarding, and reconciliation.
For Australian organisations to reap the benefits of AI, the focus must shift to integrating these technologies where work is actually carried out. Processes govern operations, influencing everything from customer service to risk management and financial expenditures. Traditionally, these processes have depended on human judgment and rules-based automation. The introduction of AI offers a new kind of “digital worker” that can adapt to various tasks and process unstructured information on a large scale.
An effective AI strategy hinges on evaluating organisational processes rather than merely adopting new technologies. Appian encourages organisations to identify problematic areas, bottlenecks, and delays, determining where AI can provide meaningful improvements.
Transforming AI Strategy into Results
Some Australian organisations are already seeing success by embedding AI into their processes. For instance, Wotton Kearney, a leading insurance and risk legal business in the Asia Pacific, is overhauling its core operations to replace legacy systems with advanced AI capabilities. This transition aims to deliver enhanced client reporting, streamlined matter management, and significant efficiency gains. The firm anticipates that its new AI-enabled system will save thousands of lawyer hours annually, allowing teams to concentrate on higher-value, client-facing tasks.
The true potential of AI lies not in driving individual productivity but in its ability to transform organisational workflows. The most substantial gains are realised when AI is integrated into core processes, enabling human talent to focus on innovation, problem-solving, and building stronger customer relationships.
As organisations in Australia continue to embrace AI, the emphasis must remain on overcoming implementation challenges and ensuring that technology is used as a tool to enhance existing processes, ultimately leading to sustainable growth and improved outcomes.
