In a recent report by CPA Australia, it was found that Australian businesses are lagging behind their global counterparts when it comes to embracing new technology and digital strategies. The 2024 Business Technology Report revealed that only 53 per cent of Australian businesses have a digital strategy, compared to 69 per cent of businesses outside of Australia. Countries such as China, Hong Kong, Vietnam, Singapore, and Malaysia were identified as being ahead of Australia in this aspect.
According to CPA Australia, businesses that have a digital strategy are much more likely to report an increase in profitability. The report stated that nearly 69 per cent of businesses with a digital strategy reported an increase in profitability in their most recent financial year, while only 35 per cent of businesses without a digital strategy reported the same.
The survey, which included 1,060 accounting and finance professionals, also found that Australian businesses are behind their Asia-Pacific counterparts in terms of the adoption of artificial intelligence (AI). Only 22 per cent of Australian businesses have incorporated AI to a moderate or significant extent, compared to 41 per cent across other markets. Additionally, 34 per cent of Australian businesses stated that they have never used AI, whereas only 22 per cent of Asia-Pacific counterparts have never used AI.
It was also revealed that businesses that have increased their investment in new technology are more likely to experience improved profits. For example, of the businesses using AI, 76 per cent reported an increase in profitability in the last financial year, compared to 34 per cent of businesses that did not use AI.
Gavan Ord, CPA Australia’s business investment and international lead, emphasized the importance of new technology in business success. He stated, “Companies that embrace a range of new technologies are observably more likely to be profitable and efficient. It’s crucial for Australian businesses to embrace technologies that are appropriate for them as quickly as possible to ensure they keep pace in a tough business environment.”
While Australian businesses excel in terms of cyber security and data protection, they are slow to incorporate AI into their daily operations. The report showed that 68 per cent of Australian respondents prioritized increased cyber security protection as their company’s top technology initiative in the last year, compared to 51 per cent from other markets. Additionally, 76 per cent of Australian respondents highlighted the importance of ensuring the accuracy, security, and privacy of financial data, compared to 64 per cent of Asia-Pacific companies.
Despite their strong focus on cyber security, Australian businesses are less concerned with using technology to aid Environmental, Social, and Governance (ESG) initiatives. Only 11 per cent of Australian businesses use technology to monitor their energy usage, waste, and emissions, in comparison to 18 per cent of Asia-Pacific counterparts. Similarly, just 10 per cent of local businesses use technology for sustainability performance reporting, while the number rises to 31 per cent across other markets in the Asia-Pacific.
CPA Australia has recommended that local businesses develop and implement a digital strategy, invest in technology, use technology to meet sustainability goals, identify opportunities, and regularly review new technology. Ord emphasized that Australian businesses have a lot to learn from their Asia-Pacific counterparts and that being open to new technologies and ways of operating is crucial for success in today’s rapidly evolving business landscape. He concluded by saying, “If you stand still for too long, the world can quickly pass you by, especially when it comes to technology.”
In conclusion, the report by CPA Australia highlights the importance of Australian businesses embracing new technology and digital strategies to remain competitive in the global market. By investing in AI, developing digital strategies, and prioritizing technology initiatives, businesses can improve profitability, efficiency, and overall performance. It is essential for Australian businesses to adapt to the changing technological landscape to stay ahead of the curve and ensure long-term success.
