Falling behind on AI? How to clear barriers on the path to scaleInvestment signals from Australian companies are growing despite evidence that suggests AI is not delivering the same level of change here as it is overseas.DAVID ALONSOAustralian companies are under pressure to see the big picture with AI adoptionGift this article4 min read18 hours agoAustralian companies’ fragmented, piecemeal approach to implementing AI is causing them to fall behind their global peers.According to the Deloitte AI Institute’s 2026 edition of the State of AI in the Enterprise report, the number of Australian organisations seeing their industries substantially transformed by the technology is tracking below the global average, even as investment intentions grow. The report, which surveyed more than 3,000 director-to C-suite leaders around the globe and in Australia, found that 65 per cent of Australian respondents intended to increase AI investment in the new financial year, with one-quarter flagging significant investment growth.These investment signals come despite evidence that suggests AI is not delivering the same level of change here as it is overseas. Just 12 per cent of Australian respondents said generative AI (GenAI) was currently substantially transforming their organisation and their industry, compared to 25 per cent globally. Turn to agentic AI, and the situation looks similar. Just 4 per cent of Australian respondents claimed the technology was transformative in the present, while a further 11 per cent claimed it would be in less than one year. Globally, respondents were twice as bullish. Isolated productivity gains or business reimagination?Overall, 81 per cent of Australian respondents say they anticipate an AI productivity uplift, compared to 90 per cent globally. While some might attribute this sentiment gap to a healthy dose of classic Australian cynicism, we believe it points to key differences in the way Australian organisations tackle adoption challenges when compared to their global peers. Quite simply, Australian companies sometimes miss the bigger picture. AI efforts are often confined to boosting the productivity of individual workers, rather than delivering enterprise-wide impact. Until these initiatives are stitched together into a broader reimagination of the business, the real value of AI will remain out of reach. David Alonso is National AI Market Lead at Deloitte AustraliaWhen asked for their current approach to process transformation during AI implementation, 37 per cent of Australian respondents said they were redesigning several key processes while keeping the overall business model intact, which is above the global average. Global respondents, by contrast, were more likely to deploy AI to reimagine core processes and business models, unlocking new products, services and revenue streams.The modern approach to scaling AITaking the initiative to reimagine business models reflects a more modern approach to scaling AI, grounded in the recognition that, over time, AI will fundamentally reshape every business.As we wrote in Path to Scale 2.0, the arrival of agentic AI means operating models must evolve to support a blended workforce of humans and agents to transform the future of work and create long-term value.Organisations that deliberately evolve their operating models and embed AI at the core of their operations can scale these capabilities safely and without fragmentation. This progression typically moves from human-led use of AI tools, to human-agent teaming with clear responsibilities, and ultimately to end-to-end agentic workflows with minimal human oversight.We don’t suggest this is easy, but adopting a more holistic mindset makes AI adoption at scale more likely to succeed by empowering leaders to take ownership of key decisions.Barriers to AI adoption in AustraliaThe report also shows that for Australian organisations, governance and risk concerns, talent gaps, and technology access and cost or data availability issues are the top non-fiscal barriers to GenAI and agentic AI adoption. With the right strategy, technology and data concerns stop being about third-party security concerns and rising token consumption, and instead become about building a robust, sovereign architecture that includes secure and well-governed data pipelines. Closing skills gaps stops being only concerned with the day-to-day hustle to recruit the right talent or upskill the workforce. It also now encompasses longer-term plans to change workforce shape, size, cost and skills as AI becomes embedded into the heart of business operations.Governance, risk and compliance concerns also shift towards building operational trust, where controls built into design, testing, deployment and live operation — reinforced by continuous monitoring and clear intervention protocols — provide the confidence needed to scale AI. As leaders look to boost AI investment in the new year, they should consider whether the initiatives they are backing truly integrate and scale AI at the heart of their operations to create long-term value, or whether they risk stalling it in silos. Acting in alignment with total organisational change is the only way Australian organisations can keep pace with global peers and share in the benefits of AI-led transformation.David Alonso is National AI Market Lead at Deloitte Australia.  -DisclaimerThis publication contains general information only and Deloitte is not, by means of this publication, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This publication is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. 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