They prioritise security and data protection
Australian businesses risk falling behind their Asia-Pacific counterparts if they do not adopt digital strategies and new technologies, including artificial intelligence (AI), the Certified Practising Accountants (CPA) Australia has warned.
CPA’s 2024 Business Technology Report, which surveyed 1,060 accounting and finance professionals, revealed that only 53% of Australian businesses have implemented a digital strategy. This is significantly lower than the 69% of businesses in other Asia-Pacific regions, including Mainland China, Hong Kong, Vietnam, Singapore, and Malaysia.
The report highlights a strong correlation between having a digital strategy and increased profitability. Nearly 69% of businesses with a digital strategy reported profit growth in the most recent financial year, compared to just 35% of those without one.
Australian businesses also lag in AI adoption, with only 22% of local businesses having integrated AI to a moderate or significant extent, compared with 41% in other Asia-Pacific markets. In addition, 34% of Australian businesses reported never using AI, while just 22% across the Asia-Pacific said the same.
The report also underscores the financial benefits of investing in new technologies. Among businesses that have adopted AI, 76% reported increased profitability, compared to 34% of those not using AI.
“The research demonstrates the importance of new technology to business success,” said Gavan Ord (pictured above), CPA Australia’s business investment lead. “Companies that embrace a range of new technologies are more likely to be profitable and efficient. It’s crucial for Australian businesses to adopt appropriate technologies quickly to remain competitive.”
Despite trailing in digital strategies and AI, Australian businesses perform well in cybersecurity and data protection. The report found that 68% of Australian respondents prioritised cybersecurity in the past year, compared to 51% in other Asia-Pacific markets. Furthermore, 54% of Australian businesses rated their cybersecurity proficiency as above average or better, compared to 48% from other regions.
However, Australian businesses showed less interest in using technology for environmental, social, and governance (ESG) initiatives. Only 11% of Australian companies use technology to monitor energy usage, waste, and emissions, compared to 18% across the Asia-Pacific. Similarly, just 10% of Australian businesses use technology for sustainability performance reporting, compared to 31% in other markets.
“Australian businesses can learn a lot from their Asia-Pacific counterparts,” Ord said. “Being open to new technologies is crucial to the success of any business. If you stand still for too long, the world can quickly pass you by — especially when it comes to technology.”
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