With AI dominating headlines and boardroom agendas alike, it’s easy to get swept up in grand predictions. But behind the hype, what’s really happening in Australian and New Zealand workplaces?

To cut through the noise, we surveyed 864 business leaders and tech professionals across ANZ to find out how AI is being adopted, what’s holding it back, and where it’s headed next. While the excitement is palpable, Jack Jorgensen, Avec’s Data, AI & Innovation Practice Lead, says what’s really unfolding is more complex and more revealing than the headlines suggest.

“A lot of organisations are still stuck in the Proof of Concept stage,” says Jack. “That’s not surprising – AI isn’t a magic wand. It’s a tool. Like any tool, it has to be embedded within real processes to have an impact. Right now, many businesses are still reconciling the hype with the reality of what AI can actually do.”

From urgency to uncertainty: Why strategy is still missing

Despite executive-level urgency to “do something” with AI, many organisations are struggling to translate that into tangible strategy. Our survey found:

• 41% of respondents cited “no strategy” as a major AI adoption barrier
• 41% said their organisation had “unclear goals”
• 34.4% pointed to a “lack of clear ownership”

“We saw this with Automation too,” says Jack. “Executives want momentum, but the problem is that every department has its own unique processes and that nuance often isn’t visible from the top. Without input from people actually doing the work, AI initiatives stall. The better approach? Let teams experiment, find real use cases, and celebrate the wins. That kind of bottom-up traction creates momentum that sticks.”

Fear of AI is real, but is it justified?

One in four survey respondents (24.9%) listed “job displacement or change” as their top concern when it comes to agentic AI systems. But Jack warns against jumping to conclusions.

“We’ve seen this fear before. The same anxiety was there when Automation started gaining traction. The reality is, many of the job cuts we’re seeing today aren’t because of AI, they’re because of economic pressure and over-hiring corrections. AI is being used as a scapegoat because it makes layoffs look like a forward-thinking decision, when really it’s about cost. If we focus too much on AI as a threat, we risk missing its actual value.”

Instead of seeing AI as a way to cut headcount, Jack says organisations should utilise it as a tool to enhance quality, speed, and productivity.

“If you reward people for improving their workflows with AI – instead of fearing they’ll work themselves out of a job – you’ll get two things: better, more reliable use cases, and more engaged teams actively looking for new opportunities. That’s what drives real business growth.”

Data use is up, but so are the risks

Our survey found that 33.9% of professionals are already using AI for data analysis; a promising sign of adoption in everyday workflows. But Jack adds a note of caution.

“It’s great to see adoption in areas like analytics, but we have to be careful. Large language models don’t understand truth, they generate probability. AI can support analysis, but it shouldn’t replace rigorous, traditional verification. We still need humans to make sense of what’s surfaced.”

Security is another concern that’s keeping some businesses from going further. 46.2% of respondents said “security or compliance” was the biggest barrier preventing more regular AI use.

“It’s encouraging that people are thinking seriously about security,” says Jack. “We need to treat AI systems and the data behind them with the same level of scrutiny we give to any other sensitive tool.”

So, where are we in the AI journey?

Jack believes we’re in an AI bubble, similar to the dot-com boom – full of excitement, investment, and a fair amount of overreach.

“The tech is real. The opportunity is real. But it’s early. We’re seeing fear, confusion and fast moves, often without strategy. If organisations can stop chasing the hype and start embedding AI into processes with care, they’ll not only unlock value but avoid repeating the mistakes of past tech cycles.”

So, where do we come in?

Access the full findings from 864 professionals across Australia and New Zealand here. Discover how teams are really using AI, and what the data tells us about the future of work.