Australian enterprises apply AI technology primarily for expense reduction, rather than boosting revenue generation

In a recent report by ASX-listed Decidr, it was revealed that while the adoption of Artificial Intelligence (AI) is rapidly increasing among Australian businesses, there is a significant gap in the use of AI for revenue growth compared to cost-cutting measures.

The National AI Readiness Index Report 2025 highlights that marketing and customer support are the areas where businesses expect to see the most benefit from AI. However, the report suggests that these departments are primarily using AI to streamline processes and reduce operational expenses, rather than enhancing customer experience or boosting sales figures.

Human resources ranks lowest for expected AI benefits, indicating a potential overlook of AI's potential in improving workforce management, talent acquisition, and employee development. This finding could mean that businesses are overlooking the potential of AI to optimise their workforce and develop their talent more effectively.

Agentic AI, an advanced form of artificial intelligence that exhibits autonomous, goal-oriented behaviour, according to McKinsey & Company, can analyse market trends, optimise supply chains, and adjust marketing campaigns in real-time to work towards a single objective like increasing sales. Companies using agentic AI to boost sales have achieved up to 49% faster revenue growth and 24–40% higher conversions.

The report also notes that businesses are moving into AI implementation without comprehensive strategies, potentially overlooking substantial opportunities. Decidr CEO David Brudenell stated that giving agentic AI an objective like "grow sales by 20%" or "improve cashflow resilience," it will activate multiple agents to look across various data sources to make progress towards that objective.

The top barriers hindering effective AI adoption are budget constraints (28%) and security concerns (29%). Interestingly, only 25% of businesses cite competitive pressure as an AI driver. Despite this, 68% of SMEs believe that AI tools will give them a competitive edge. However, 76% of these SMEs are beginning AI adoption without a formal roadmap.

The report indicates that 57% of Australian organisations are prioritising efficiency gains and cost reduction through AI, while only 25% are focusing on using AI to drive revenue growth. This trend suggests that businesses may be missing out on opportunities in other crucial areas, such as improving workforce management and talent acquisition through AI.

In conclusion, the report underscores the importance of strategic planning and understanding of AI's growth potential for businesses looking to leverage AI for revenue growth and improved workforce management. By adopting agentic AI and developing comprehensive strategies, businesses can unlock the full potential of AI to drive growth and competitiveness.

Australian enterprises apply AI technology primarily for expense reduction, rather than boosting revenue generation