Australian businesses are emerging as global leaders in responsible artificial intelligence governance, but continue to lag behind international peers in using AI to boost productivity. According to KPMG’s Q1 2026 Global AI Pulse survey, more than 31% of Australian organisations prioritise AI governance frameworks to ensure safe, compliant, and trustworthy deployment of the technology, compared to 26% globally. At the same time, only 35% of Australian firms focus on using AI for productivity and automation, below the global average of 42%. The report highlights a cautious national approach, with strong emphasis on trust, cybersecurity, and data protection over rapid efficiency gains. Around 38% of Australian businesses are using advanced analytics and real-time insights, slightly behind global adoption rates. KPMG Australia’s chief technology officer John Munnelly noted that while Australia is setting a high standard for responsible AI use, it has yet to fully unlock the productivity benefits. Experts suggest the challenge ahead is balancing ethical oversight with faster integration of AI-driven automation across industries.
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