Australian CIOs lead AI adoption but readiness lags, says OpenText

Australian CIOs lead AI adoption but readiness lags, says OpenText

A new OpenText global survey finds Australian organisations ahead in AI adoption yet falling short on information readiness, with security, governance and ROI measurement posing key challenges.

OpenText released the findings of a global survey of enterprise technology and cybersecurity leaders this week, revealing that while Australian organisations are among the world leaders in AI adoption, many remain unprepared to fully scale its potential as they struggle to secure, govern and align AI initiatives across their business.

Developed in partnership with the Ponemon Institute, a leading independent research firm focused on information security and privacy management, the report, The Challenges to Ensuring Information Is Secure, Compliant and Ready for AI, revealed that 51% of Australian enterprises have already embedded AI into their IT and business strategies, among the highest adoption rates globally.

At the same time, only 20% feel very confident in their ability to measure return on investment (ROI) from securing and managing the information that underpins AI.

These findings are part of a global survey of almost 1,900 senior IT and security leaders worldwide, including nearly 200 from Australia.

Highlighting that the findings mirror the growing disconnect between AI ambition and operational readiness across Australian enterprises, OpenText Chief Digital Officer Shannon Bell said, ‘This research confirms what we’re hearing from CIOs every day. AI is mission-critical, but most organisations aren’t ready to support it.

‘Without trusted, well-governed information, AI can’t deliver on its promise. At OpenText, we’re helping IT and security leaders close that gap by simplifying information complexity, strengthening governance and ensuring the right information is secure and actionable across the enterprise.’

Readiness lagging ambition

While AI ranks as a top strategic priority for Australian CIOs, the findings show that many organisations remain held back by a lack of information readiness to deploy AI securely or effectively. The report also found that while IT and security leaders remain confident in the ROI of AI, it is challenging to adopt, secure and govern effectively.

As the gap between ambition and capability widens, effective information management is emerging as a critical enabler. The research shows that without simplified systems, secure data practices and staff preparedness, AI initiatives risk stalling before they scale.

  • Information complexity is a critical challenge: 80% of Australian IT and cybersecurity leaders say that reducing complexity is either essential (29%), very important (25%) or important (26%) for maintaining a strong security posture, with unstructured data cited by 47% as a top contributor to complexity.
  • Data governance is the first line of defence: Data governance frameworks (45%) top the list of AI risk mitigation tactics cited by Australian respondents, alongside AI-specific security programs (37%) and staff security awareness training (37%).
  • Confidence in demonstrating ROI remains low: Only 42% of Australian respondents are ‘very’ or ‘highly confident’ in their ability to measure ROI on securing and managing information assets.

The AI paradox: high confidence in ROI, low readiness in execution

Despite strong enthusiasm for AI, new data reveals a mismatch between ambition and execution in Australian enterprises. Many organisations still lack the security, governance and alignment needed to deploy AI responsibly.

  • 52% of Australian respondents rate AI adoption as a top priority, with 53% confident or highly confident they can demonstrate ROI from AI initiatives. Meanwhile, 54% say it is ‘very difficult’ or ‘extremely difficult’ to reduce AI security and legal risks.
  • Fewer than half (41%) say IT and security goals are aligned with those driving AI strategy, even though 48% of Australian organisations have hired or are considering hiring a chief AI officer or chief digital officer to lead it.
  • GenAI is gaining traction, with 29% of Australian organisations having adopted it and another 31% planning to in the next six months. Top GenAI use cases include security operations (45%), software development (43%) and accelerating threat detection or incident response (37%).
  • Yet only 17% of Australian organisations have adopted agentic AI, and 19% plan to do so in the next six months. Just 29% say agentic AI is highly important to their business strategy.

Improving information and AI readiness

The research also revealed best practices for achieving AI readiness based on responses from the organisations that have invested in AI. These include:

  • Protect sensitive data exposure: Organisations should know where sensitive data resides, who can access it and how it is used. Strong access controls, clear data classification policies and anomaly detection tools can help reduce exposure.
  • Implement responsible AI practices: A comprehensive approach includes data cleansing and governance, validating AI inputs and outputs, employee training and regular model bias checks to ensure AI is used safely and ethically.
  • Strengthen encryption: Encryption should be applied to data in storage, transit and during AI processing. This ensures that sensitive information remains protected throughout the AI lifecycle.

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