SYDNEY, AUSTRALIA, 26 NOVEMBER 2024 – A new report from Avanade shows that mid-market organisations in Australia are embracing artificial intelligence (AI) with confidence, with most anticipating up to fourfold returns within 12 months. However, gaps in workforce readiness, data governance and tech infrastructure stand as key obstacles for mid-market organisations to achieve sustainable returns.

The Avanade Trendlines: AI Value Report 2025 draws on insights from 4,100 respondents globally, including 400 Australian business and IT decision-makers from industries such as banking, consumer goods and services, energy, government, healthcare, and retail.

Key Australian findings from the report include:

Like their global counterparts, top priority for Australian mid-market organisations in 2025 is using AI to drive new revenue while building a collaborative workplace culture.
80% of Australian respondents expressed concern over losing competitive advantage without rapid AI adoption, hence fast-tracking implementation is a top priority.
86% of Australian mid-market organisations expect to increase their budgets for generative AI projects by up to 50% more, consistent with global trends at 87%.
77% of Australian respondents plan to increase investment in AI training and fluency for their employees, while 76% are focusing on change management to ensure AI supports both new and existing ways of working.
In Australia, 51% say they are at the proof-of-concept stage, compared to 44% globally.

The report also underscores pressing concerns around technology infrastructure and data security:

94% of business and IT leaders in Australia are fast-tracking plans to modernise legacy systems.
67% state that poor data quality and governance inhibit AI progress.
With 92% citing sensitive data protection as critical, Australian companies are stepping up investments in data governance – with 85% implementing or have implemented new data platforms and governance standards. Furthermore, 90% of them have developed or are developing responsible AI guidelines to inform data and AI practices.

Carla Ramchand, Managing Director, Avanade Australia, said: "Mid-market organisations play an integral role in driving Australia’s economic and productivity growth. As a company that is committed to supporting Australia’s position as a global leader in AI, we want to extend our experience and expertise to help mid-market organisations in Australia realise the full potential of their people and businesses through technologies such as AI.”

“We know many mid-market organisations are at a crucial juncture of their transformation, and this is where AI can be a compelling differentiator – helping them create a significant competitive advantage, drive new revenue, build a future-ready workforce, and emerge as leaders in the global arena,” Carla added.

To help mid-market organisations in Australia thrive using AI, Avanade has recently introduced seven new services that combine Avanade’s industry and technical expertise with Microsoft’s secure, AI-powered platforms and tools. Designed with efficiency and agility in mind, the new services provide enterprise-grade innovation and technology at a scale that suits the size and needs of mid-market organisations. The new services are:

Accelerate Revenue Generation: This service helps sales teams in mid-market organisations move beyond traditional CRM systems – equipping salespeople with AI-powered sales tools that increase productivity, improve customer engagement, and drive revenue.
AI-Powered Migration and Modernisation: Designed to help mid-market organisations confidently navigate their cloud migration journey to Microsoft Azure, with Avanade providing expert guidance at every stage of the cloud journey. This comprehensive service mitigates business risk, tackles technical debt, optimises costs, and paves the way for a sustainable, AI-ready digital core.
Build and Modernise AI Apps: Designed to help mid-market organisations create innovative and efficient AI-powered apps for specific business needs; transform legacy systems by integrating AI whilst enabling continuous improvement with scalable, flexible architectures; as well as build AI-ready foundations that address data silos and security challenges.
Drive Business Transformation with Copilot: This service brings together value-based accelerators, industry and functional expertise, and responsible AI methods to help mid-market organisations unlock new sources of value and innovation through Microsoft 365 Copilot, while providing the proper safeguards and controls.
Modernise ERP: This service helps mid-market organisations power business growth and adaptability, as well as reduce total cost of ownership, with a modern, AI-led ERP platform that enables new business models and revenue streams, faster time to market and better-informed decision making.
Unify your Intelligent Data and Analytics Platform: Designed to help mid-market organisations overcome limitations of legacy technology, trust, and data estate complexity to reach AI ambitions; as well as empower employees with better access to data and insights.
Unify Threat Protection: Designed to help mid-market organisations stay ahead of fast-moving threats and rapidly detect and investigate incidents. This service combines Microsoft Threat Intelligence, Sentinel SIEM, EDR and Security Copilot to enhance analysis and visibility, boost productivity and maximise investments.

More information about Avanade’s new AI services for mid-market organisations in Australia are available here. The full Avanade Trendlines: AI Value Report 2025 is available for download here.

Mid-market organisations in Australia bullish about AI: Increased spend to drive new revenue and 4x returns expected in 2025