Businesses Are Investing Heavily in AI: Measuring the Return on Investment
Australian Financial Review
ENRICHED
Details
- Date Published
- 3 Mar 2026
- Priority Score
- 2
- Australian
- Yes
- Created
- 2 Mar 2026, 08:00 pm
Description
While many businesses use the technology to shave minutes and dollars off existing processes, others are going “AI native”. This year will see flyers and flops.
Summary
The article highlights the significant investment by businesses in artificial intelligence technologies, focusing on the case of nib, an ASX-listed insurer. AI implementation at nib has reduced operating costs and boosted customer acquisition, demonstrating tangible ROI. This development is indicative of broader trends in AI adoption among Australian companies, though the article does not delve deeply into catastrophic or existential AI risks. The discussion emphasizes practical benefits and internal efficiencies rather than broader safety or regulatory implications.
Body
Agnes KingContributorMar 3, 2026 – 6.00amArtificial intelligence has cut nib’s operating costs over the past year while helping the ASX-listed insurer acquire a record number of customers.At the company’s first-half results in February, chief executive Ed Close highlighted the clear benefits emerging from nib’s multi-year AI investment strategy, announcing it had hit a new high of 1.95 million customers while lowering its cost to service them, reducing its operating expense ratio from 17.5 per cent in the first half of FY2025 to 16.5 per cent.Loading...SaveLog in or Subscribe to save articleShareCopy linkCopiedEmailLinkedInTwitterFacebookCopy linkCopiedShare via...Gift this articleSubscribe to gift this articleGift 5 articles to anyone you choose each month when you subscribe.Subscribe nowAlready a subscriber? LoginLicense articleFollow the topics, people and companies that matter to you.Find out moreRead MoreAIAFR ReportsNIBDatabricksAgnes KingContributorAgnes is a former reporter at the Financial Review. Connect with Agnes on Twitter.Fetching latest articles