GenAI hype meeting reality for Aussie orgs

Despite all the hype around generative AI, new research from Informatica suggests that Australian organisations are facing difficulties moving GenAI pilots into production.

The AI-powered cloud data management company has released the findings of its global CDO Insights 2025 survey, revealing that in 70% of Australian organisations surveyed, less than half of GenAI pilots have successfully transitioned into production. A slim majority (53%) of Australian organisations have responded by slowing or halting their GenAI initiatives as a result over the past 12 months, which is the highest proportion among global respondents.

But despite this, Australian organisations remain optimistic about the technology and are continuing to invest in data strategies to realise AI’s potential, the survey found. More than nine in 10 (92%) Australian data leaders anticipate their organisation increasing their investments in GenAI this year.

To date 55% of Australian organisations have already integrated GenAI into their business practices, and yet 98% of respondents admit facing significant challenges in demonstrating the business value of their GenAI initiatives.

The top three data related challenges Australian organisations report facing tied to the adoption of GenAI are quality of data (57%), ensuring ethical us of AI (55%) and data privacy and protection (45%). Meanwhile challenges demonstrating the business value of GenAI initiatives are related to reliability of results (57%), cybersecurity and privacy compliance (49%) and responsible use of AI (47%).

The vast majority (92%) of respondents meanwhile suggested that the regulatory environment is holding back AI efforts within their companies, and 89% state that moderate to significant training is needed for employees to responsibly use AI.

Informatica Country Manager for Australia and New Zealand Alex Newman said the findings demonstrate that Australian businesses’ enthusiasm for GenAI is outstripping their readiness to support the tools effectively.

“Despite 96% of Australian data leaders facing pressure from the C-suite to deliver quick return on investments from GenAI, many are moving forward without addressing critical issues such as data reliability, flagged by 80% organisations as a major challenge, jeopardising both immediate goals and long-term success,” he said.

Image credit: iStock.com/Khanchit Khirisutchalual