A new report from the Deloitte AI Institute, 'The State of Generative AI in the Enterprise: Now decides Next', reveals that over 75% of Australian business and technology leaders anticipate Generative AI (Gen AI) to drive substantial transformation over the next three years but nearly half (49%) say a lack of technical talent and skills as a major obstacle to adopting Gen AI.

The report also reveals 40% of respondents see intellectual property issues as the biggest concern when it comes to Gen AI adoption. 60% believe the rise of Gen AI tools and applications will erode trust in national and global institutions, a figure 11% higher than the global average.

"We will only see the full transformative potential of GenAI when it is applied at scale, with the right focus on the right value pools," says Kellie Nuttall, Deloitte Australia AI Institute Leader. She stresses the need for organisations to develop strong ethical and cultural practices around AI, as important as AI utilisation itself.

The report is based on a survey of more than 2,800 respondents from director to C-suite level across six industries and 16 countries. It highlights that 79% of Australian business and technology leaders expect Gen AI to drive substantial transformation within their organisations and industries over the next three years. This figure is 14% higher than the global average.

"Generative AI is transformative technology and we’re already seeing significant opportunities for innovation and productivity improvement across many industry sectors," says Adam Powick, Deloitte Australia CEO. He emphasises the need for a clear strategy, access to the latest technology and expertise, and a focus on workforce education and reskilling to keep pace with this rapidly evolving technology.

Stu Scotis, Deloitte Australia Strategy & Artificial Intelligence Lead Partner, notes that businesses are prioritising investment in Gen AI to unlock tangible benefits. He also points out the growing demand for education and skills training, with more than 600 people passing through Deloitte's AI Fluency workshops.