Despite the pervasive presence of artificial intelligence (AI) in headlines and boardroom discussions, new data from Brennan, Australia’s largest Systems Integrator, indicates that many organisations are still caught in the AI hype cycle. These companies are finding it challenging to translate AI’s potential into tangible business value.
A recent poll conducted by Brennan, surveying IT leaders and decision-makers from medium and large organisations, identified return on investment (ROI), data governance, and the lack of a clear AI strategy as key obstacles hindering widespread AI adoption.
Key challenges in AI adoption
The poll’s findings highlight several significant hurdles:
- Identifying business use cases was cited as the biggest concern for 41% of respondents pushing for AI adoption.
- Building a strategy amidst the AI hype was the top challenge for 32%.
- Defining ROI from AI implementation was the primary struggle for 20% of organisations.
- Securing funding was a significant barrier for 7%.
Decentralised AI and governance concerns
The research also revealed a fragmented approach to AI within many organizations:
- 60% reported that AI use in their organisation was decentralised, with “everyone doing their own thing.”
- Only 8% reported successfully implementing a centralised AI delivery model.
- 17% noted that while a centralised model existed, “shadow AI” was active due to the centralised approach being ineffective.
- 4% stated they were completely blocked from utilising AI in their workplace.
Steve Anderton, Brennan’s Head of Digital, commented on the findings, which were gathered from nearly 200 IT decision-makers. He stated that AI maturity remains inconsistent, with data governance, security, and infrastructure readiness falling short of what is needed to support AI ambitions. “While leadership is under pressure to act on AI, many organisations were trying to race ahead without clear guardrails, proven use cases, or the right data foundations in place,” Mr. Anderton said. Alex Shuttleworth, Brennan’s Head of Data and AI, added that the survey responses revealed concerning controls around the use of AI. “While a decentralised or Shadow AI approach can accelerate value creation by AI and foster innovation, organizations must acknowledge the substantial data security, compliance, and governance risks and seek a balanced approach that fosters innovation while controlling exposure,” Mr. Shuttleworth advised.
