Market Overview

Sydney market overview

The first half of 2025 has been mixed with some industries showing signs of recovery but others still facing challenges. Recruitment activity is on the rise in certain sectors, but the growth outlook has stagnated. The combination of Federal elections and geopolitical uncertainty created elsewhere have tempered our expectations on what will happen for the remainder of 2025

We are still seeing large volumes of applications across Project Services, Support, and Corporate Services. It is not unusual for us to still receive 750-1500 applications per role. Responding to this volume of applications is hard for agencies and employers and so the levels of candidate service is suffering, leading to a lot of frustration in market. Recruitment agencies and internal recruitment teams continue to operate very lean with a laser focus on productivity. At Talent we have maintained our full teams, as we take a long-term view and are prepared for when the market turns.

Permanent hiring remains stagnant with some salaries on some roles returning to levels not seen since 2019. We continue to see redundancies and a move towards “profitable growth”. We experienced the cooling of salaries across many job families, although hard to find niche talent will always test the top end of what the market has to offer. We have yet to see the true impact of AI. Companies hiring for Software Engineering and Data roles are now expected to have experience in or an understanding of Generative AI, LLM’s or Machine Learning.

Despite all this, there are some green shoots as the macroeconomic outlook shows moderate growth. Economic growth surpassed market expectations with GDP growing in the final quarter of the financial year. The RBA has again cut the cash rate, and further cuts are projected. Inflation is predicted to be 2.9% by the end of 2025, which sets us up for a brighter start to FY26.

Business critical projects can only be postponed for so long, so the need to invest in technology & transformation combined with some positive signs the economy is finally improving, suggest that investment and hiring is starting to recover. With a high volume of candidates still competing for jobs, the advice to candidates is to be flexible and think holistically around what matters most when considering an opportunity. Companies are becoming fussier with an expectation of an 80%-90% match to the job profile, whereas throughout the COVID period, candidates with a 60%-70% match were being hired. Advice for clients would be that the best candidates are still hard to attract. There is a reservation to jump ship in a market as unpredictable as ours, so when you find a great candidate make your offer competitive and move fast to secure them.

The NSW Government continues to look to make savings through contingent workforce cuts. This does seem to be slowing down with some departments (especially in IT), at breaking point so hopefully will bottom out over the next 3-6 months. In Labors first term, inflation was been the dominant challenge so the government’s room to maneuver on policy was been constrained. With the recent more positive inflation figures the risks that will be most front of mind will be different: namely now the risk of a slowing economy and the need to maintain stability and confidence, particularly given what else is happening in the world should come to the forefront of Labors actions. Hopefully now they can look to releasing some funds for projects which will have the need and appetite for the expertise of the white-collar contingent labor market.

While the re-elected Labor government has promised contingent workers better access to benefits this has yet to eventuate and the significant decrease of contingent opportunities in the tech and white collar continues to put pressure on rates.

When it comes to technology sales roles, we have also seen the market revert to pre-COVID levels in terms of hiring for many go-to-market roles i.e., sales, sales leadership, and for some roles we have seen demand drop well below pre-COVID levels, i.e., customer success, channel/partner and pre-sales.

Candidate needs in Sydney

• Flexible working arrangements
• Progression and professional development opportunities, including improved access to online learning from their employer or third parties
• Rewarding work – stable, long term large project/BAU work will often be preferred

Business needs in Sydney

• The expectation of 3-5 days per week working in the office
• Opportunity to leverage the rapidly developing opportunities with AI
• Stable workforce with stable predictable costs
• Cybersecurity skills and experience

The year ahead for Sydney 

What can we expect as we head into FY26?

We continue to remain optimistic about the market outlook as upgrades and business-critical projects need to be completed. The Manager Services Providers and Consultancies are slowly starting to rebound off the back of these projects. The caveat to this is that they are now competing primarily on cost, which in a tight labour market brings into question the ability to deliver over an extended period.

The Financial Services industry continues to show resilience with the Big 4 reporting strong half-year results despite competition and rising costs. Despite the positive financial results, we are in a period of consolidation. Headcount reductions and offshoring have continued into the first half of 2025 and most likely through to the end of the calendar year. We have yet to see the full impact of Agentic AI on the industry, FY26 is when we expect to see this being rolled out.

In terms of working arrangements, from the job seeker’s perspective, there is higher demand for more working from home options and general flexibility – but although this is the case, we are finding that the majority of companies are enforcing a return to the office (3-5 days per week). In a tougher market this may work, but Australia still has a skills shortage, so when the market lifts, we suspect employers that offer less flexibility will suffer. Fully remote work only seems to be available to candidates who are willing to take pay cuts to work from home entirely.

Looking at top skills right now, cybersecurity is in high demand. As Australia is a wealthy country and a fast adopter of new technologies, it’s an attractive target for cyber criminals. The government wants Australia to be “a world leader” in cybersecurity by 2030. State government agencies will have to scale up to address (and get in front of), an increase in frequency and complexity of attacks, and as such, cybersecurity will be an area to watch out for over the next few years. The Albanese government’s Clare O’Neil (Minister for Home Affairs and Minister for Cyber Security) has already described cyber threats as, “the fastest growing threat that we face as a nation”. Part of the funding allocated will be invested in a threat sharing platform for the health sector which will drive some demand in eHealth for skilled contingent labor in 2024. $586.9 million has been announced for the “action plan”, which runs until 2030. Local government agencies and universities are already working on the implications highlighted in the Security of Critical Infrastructure Act and planning investment accordingly. This includes hiring in this space.

If you’ve been applying for jobs and hearing nothing back, you’re not alone. And if you’re a hiring manager wondering why great candidates are vanishing mid-process? It’s the same story.

SEEK’s latest Employment Trends Quarterly Snapshot (July 2025) confirms what many in South Australia are already feeling: competition is heating up. Application volumes are up, hiring delays are costing good candidates, and businesses that move fast are winning.

“Public sector jobs are seeing the highest number of applicants per job ad,” says Vimal Venugopal, Senior Consultant in Technology & Project Services Recruitment from our Talent office in Adelaide. “According to SEEK, that index now sits at 220, and Professional Services roles are close behind at 187. That’s a huge amount of competition.”

And it’s not just the data, it’s what’s happening on the ground.

“The SEEK data is completely in line with what we’re observing in the Adelaide market,” Vimal adds. “For example, we listed a Data Migration Analyst role and an ICT Support Analyst role and received 299 and 342 applications respectively.”

Here’s what this means for both sides of the hiring equation and how to stay ahead.

Employers: Why hiring in South Australia is slower and riskier than you think

With more people applying per role, it might look like there’s no shortage of options but volume doesn’t always equal quality. Many hiring managers are finding that while applications have spiked, top candidates are accepting other offers well before interviews are locked in.

“The biggest risk right now is hesitation,” Vimal warns. “If you wait too long for the ‘perfect’ candidate, you’ll likely miss out on someone great who’s already in market and motivated.”

Here’s how smart employers are adapting:

• Shortlist fast, schedule faster. Cut delays wherever you can. A recruitment partner can help by doing the initial shortlisting and managing the candidate experience end-to-end.
• Communicate early and often. “Even a short message helps,” Vimal says. Candidates notice when they’re left in the dark.
• Reframe your ideal candidate. Capability, availability and drive should take priority over ticking every box.
• Think long-term. A strong, respectful candidate experience builds your brand and keeps your talent pool warm for future roles.

Job seekers: How to stand out while job hunting in South Australia

High application volumes mean job seekers need to be sharper than ever. If you’re applying for roles in SA, assume you’re one of hundreds. The key? Speed, tailoring, and follow-through.

Here’s Vimal’s advice:

• “Apply early. Don’t wait for the closing date as hiring decisions often happen before then.”
• Tailor everything. Your resume and cover letter need to speak directly to each job. A generic approach won’t cut through.
• Do your homework. Learn what you can about the company and team before applying and use that insight in your cover letter or follow-up.
• Keep moving. Stay in the loop through networking, skill-building, and following up on applications. The more proactive you are, the more control you have.

“Today’s job market moves fast,” Vimal adds. “Those who act quickly and smartly win. Let’s not lose good people or good opportunities because of delays.”

How employers and job seekers can win in a competitive job market

The takeaway for both employers and job seekers is: speed and communication are your best assets right now.

Good candidates are available and they’re watching how businesses manage their hiring process and how they treat prospects. Strong roles are being advertised and hiring managers are looking for those who show intent.

If you need help navigating South Australia’s job market, head to our jobs board or get in touch with our team today. Let’s move fast and make it count. 

If you’re feeling behind on AI, you’re not alone. According to our latest survey, nearly 48% of organisations say they’re still in the experimental or pilot phase of AI adoption. This figure might sound like a red flag but according to our experts, it’s a natural and necessary step.

In our most recent webinar, ‘What’s next: How is AI really changing the way we work?’, we unpacked the realities of AI adoption with two sharp minds in tech and recruitment: JP Browne, Practice Lead from Talent Auckland, and Jack Jorgensen, General Manager – Data, AI & Innovation at Avec, our IT consultancy arm. Together, they explored the real blockers, risks, and opportunities leaders need to wrap their heads around in 2025.

1. Most companies are still figuring it out

The gap between AI hype and delivery is wide, and tinkering with tools like ChatGPT doesn’t mean your business is ready to run AI in production. As Jack points out, “There’s a big difference between punching in a search query and building something deterministic and robust enough to run in enterprise systems […] Having organisations stuck in that pilot stage isn’t a bad thing. It means they’re finding the limitations of the tech and discovering what it can actually do well”

The main takeaway both experts emphasised were: Don’t rush to a “full rollout.” Use the pilot phase to build guardrails, clean up your data, and decide what AI is actually for in your business.

2. Executive urgency doesn’t equal ownership

Our recent AI survey found that for 31% of organisations, IT or technology departments are seen as the primary drivers of AI adoption. Alternatively, Jack has observed that, “IT isn’t driving AI, they’re just putting up the guardrails. However, because execs don’t know who should own it, they’re lumping it in tech’s lap.”

According to JP, “For the first time ever, I’ve got IT leaders saying, ‘We can’t implement what you want until we’ve fixed security and infrastructure.’” 41% of leaders say their biggest blockers are lack of strategy and unclear goals. Execs want AI yesterday but, without a clear owner or roadmap, most strategies stall.

The result? IT teams are stuck between enabling the business and playing the bad guy. And without a cohesive plan, budgets dry up fast.

3. People are nervous

In the webinar, JP stated, “You can’t bury your head in the sand. AI’s affecting workflows and job design, and people are understandably unsure where they fit.” However, in the midst of such concerns, Jack reassured, “I’m seeing less job displacement and more evolution. But we need to be honest about where AI changes the game.”

The fear around AI is real, and it isn’t just about job losses. Our AI survey showed:

• 60% are concerned about ethics or compliance risks
• 58% fear loss of human oversight
• 57% worry about inaccuracy and hallucinations

Business leaders need to address these fears head-on, not just with reassurance but with transparent, actionable education.

4. Security is the #1 barrier – and that’s a good thing

46.2% of leaders said security concerns are the top reason they’re cautious about AI, and our experts say that’s the right instinct. Between real-world data breaches and shadow AI usage, the risks are everywhere.

“If I could rate that 46% stat above 100%, I would. Security and compliance should be front of mind. Full stop,” shared Jack.

From accidental uploads of entire CRMs into ChatGPT (yes, that really happened) to AI-generated code opening up backdoors for attackers, this is not the time to “move fast and break things.”

5. AI is quietly changing workforce planning

The shift is subtle, but it’s coming. One in four leaders say they’re actively exploring how AI might reshape the roles they hire for and 12.1% surveyed are already using it to reduce manual work.

As a longtime recruiter in New Zealand, JP shares his observations, “We’re not seeing mass hiring of AI engineers, but we are seeing increased demand for system engineers and data people.” While AI isn’t replacing people yet, it is changing the kind of people you need.

Conclusion: AI readiness is a journey, not a silver bullet

From security fears to strategy gaps, the state of AI in business today is still murky, but that’s not a reason to stall. As Jack puts it, “If you’re jumping in without looking, you’re probably going to break your ankles. But if you plan, pilot, and build velocity? That’s the win.”

So, the real question isn’t whether AI should be part of your business because it already is, but do you know where, how, and why it’s showing up?

Want to find out what else our AI survey revealed? Access the full report.

If you’re looking to build internal capability or make your first AI hire, get in touch with our team.

Or is your business ready to kick off a data, AI or innovation project? Drop a message to Jack’s team at Avec.

August 2025 – Leading recruitment company Talent today announced the evolution of its decade-old social enterprise, now operating under the name Rise by Talent, to address the rapidly changing entry-level employment landscape and critical skills shortages in the technology sector.

The rebrand from Talent Rise to Rise by Talent coincides with a strategic shift to meet growing demand for diverse tech talent as artificial intelligence transforms traditional career pathways. With Australia requiring 1.2 million additional tech workers by 2030 and education gaps in New Zealand, the initiative scales proven approaches to unlock untapped potential in underrepresented communities.

Proven track record of impact

Over the past decade, the program has demonstrated measurable success in bridging diversity gaps in technology careers:

• Australia and New Zealand combined: Thousands of lives changed through comprehensive employment pathways
• New Zealand specifically: 136 rangatahi graduated, achieving a 93% employment success rate
• Industry recognition: 2025 NZ Hi-Tech Award winner for Best Contribution to the Tech Sector

“The landscape is changing and so are we,” said Mark Nielsen, CEO of Talent Global. “After 30 years in recruitment, we know talented people get locked out just because they don’t have the right connections. Rise by Talent takes everything we’ve learned about what employers actually need and applies it where it’s needed most.”

Addressing critical skills gaps

Rise by Talent specifically targets the intersection of three major workforce challenges:

1. Skills shortage crisis: Australia’s need for 1.2 million additional tech workers by 2030, with proportional shortages across New Zealand
2. Entry-level transformation: AI reshaping traditional career pathways, requiring new approaches to workforce development
3. Diversity deficit: Systemic barriers preventing Indigenous, Māori, and Pacific Islander talent from accessing technology careers

In New Zealand, where only 30% of the population holds bachelor’s degrees or higher, Rise by Talent sees 70% untapped potential in communities historically underrepresented in tech sectors.

Innovative Program Design

The initiative goes beyond traditional diversity programs by providing:

• Skills-based training focused on capabilities AI cannot replace
• Real work experience with technology companies committed to inclusive hiring
• Cultural confidence development alongside professional skills
• Genuine career pathways rather than short-term placements
• 6-month fully funded internships leading to permanent employment opportunities

Kara Smith, Managing Director of Talent New Zealand, emphasizes the cultural authenticity of the approach: “We are a local Aotearoa business with a diverse team and the resources of a global market leader. This combination allows us to provide deep understanding of local talent markets while fostering genuine pathways for rangatahi in both recruitment and technology industries.”

Scaling proven success

Unlike traditional corporate diversity initiatives, Rise by Talent is backed by Talent’s unique funding model where the company covers all operational overheads, ensuring 100% of external funds raised directly support participants. This approach has enabled consistent program delivery and measurable outcomes over a decade.

The program’s flagship Hawaiki Tech initiative in New Zealand exemplifies this comprehensive approach, providing 12-week employment readiness programs with over 200 hours of training, 80 hours of work experience, and direct placement support with technology companies.

Industry partnership model

Rise by Talent works exclusively with employers committed to authentic diversity rather than quota-filling exercises. Partner companies gain access to:

• Motivated talent with proven work ethic and cultural confidence
• Diverse perspectives that drive innovation and improve profitability
• Skills-ready candidates prepared for roles AI cannot replace
• Ongoing support ensuring successful long-term placements

“Traditional grad programs are stuck on repeat – same schools, same networks, same surnames,” noted Megan Woodbury, COO of Talent. “We’re using our position in the industry to create real pathways for people who have the talent but not the networks.”

Future expansion plans

Building on proven success, Rise by Talent plans continued expansion across both Australia and New Zealand, with particular focus on:

• Regional program delivery beyond current Auckland and Wellington operations
• School pathway programs introducing technology careers to younger students
• Enhanced industry partnerships with technology companies committed to inclusive hiring
• Knowledge sharing initiatives to inspire sector-wide change

The evolution to Rise by Talent represents more than a rebrand – it signals a strategic commitment to scaling impact as the technology landscape continues its rapid transformation.

“AI is the future and it is going to revolutionise how we think and work. This is only going to complement the human intelligence.”

That was one response from our recent survey of 864 professionals across Australia and New Zealand and it captures a sentiment that’s becoming more common: hopeful, but grounded in reality.

If there’s one thing leaders need to know as they bring AI into their organisations, it’s this: how your people feel about AI will shape how they use it. Perception is a powerful predictor of engagement and understanding it can help you unlock momentum while avoiding resistance.

Cautious optimism is the dominant mood

We asked survey participants how they felt about the future of AI in their industry.
More than half (52.6%) said they’re “cautiously optimistic”.

That means they see the potential. But they’re also watching for risks.

Another 29.9% said they’re “excited” about AI’s future. Just 6.4% reported feeling “concerned”, and fewer still (0.5%) said they feel “overwhelmed”.

When asked how AI might impact their own roles in the next two years:

• 29.9% expected a “very positive” impact
• 47.9% expected a “somewhat positive” impact
• Only 7.7% expected any kind of “negative” impact

These numbers matter. They suggest your people aren’t afraid of AI, but they do want clarity. They want to know where the organisation is headed, how it affects their role, and what’s being done to make it a success.

“We cannot ignore a change that’s already here,” said one survey participant.
“AI is a solution to some business needs, it is not an objective or self-evident value proposition in its own right,” said another.

The leadership challenge: Earning trust before asking for change

Despite growing familiarity with AI, most organisations haven’t communicated a clear strategy and many aren’t actively involving their teams. In our wider survey:

• Only 16.7% of respondents said AI is a “high strategic priority” in their organisation
• Only 12.3% are planning to hire a dedicated AI specialist or leader
• Nearly 48% said they’re not sure where AI will be used in the business over the next 12 months

In other words, while employees are increasingly open to AI, most organisations haven’t told them what’s coming or how to prepare.

That’s a missed opportunity.

When leaders fail to engage with sentiment, they risk:

• Creating fear where curiosity exists
• Sparking resistance where trust could be built
• Missing out on grassroots innovation from teams ready to experiment

But when they get it right — when they listen, involve, and communicate — the payoff is huge. Teams begin to look for opportunities, not just instructions. They start solving problems with AI, not just waiting to be told how.

What can leaders do right now?

Start with these steps:

1. Test the waters. Don’t assume you know how people feel, ask.

2. Name the risks, but don’t feed the fear. Acknowledge concerns but balance them with possibility.

3. Make it practical. AI should feel like a tool, not a threat. Communicate use cases, not just ambition.

4. Show you’re in it together. Whether it’s training, experimentation, or role design, clarity builds trust.

One respondent goes as far to say, “AI is nothing more than marketing hype.”

Whether that’s true or not depends on what happens next. With the right leadership, AI can move from buzzword to business value, from doubt to momentum.

Want to know how AI is changing the way we work across Australia and New Zealand?

Download our full report based on responses from 864 business leaders and tech specialists and uncover the trends shaping the next chapter of work. Access the full dataset here.

In a world where artificial intelligence is reshaping industries by the day, how ready are we really?

To find out, we surveyed 864 professionals across Australia and New Zealand, including Chief Execs, HR leaders, and tech specialists, about their experiences, expectations, and concerns around AI. The results reveal a mix of excitement and uncertainty, optimism and hesitation. In short: the AI shift is here, but many are still finding their footing.

Confidence is low but belief is high

Over 90% of business leaders believe AI will positively impact their teams within the next two years. But when asked how well their organisation is responding to this change, just 5% said “extremely well.” That’s a gap worth paying attention to.

“We’re seeing two extremes,” says JP Browne, Practice Manager from our office in Auckland. “In some companies, AI tools are already being used on the ground, but leadership is scrambling to put the right controls in place. In others, execs are racing ahead out of FOMO, and tech teams are having to slow them down to make sure it’s the right solution.”

In both cases, the need for clarity, structure and strategy is clear. This isn’t just about embracing new tools, it’s about aligning people, processes, and platforms around a shared vision for the future.

More defence than offence

One in three organisations in our survey have already implemented policies restricting external AI tools, a sign that risk awareness is high. But in many boardrooms, fear is still outweighing forward thinking.

Rather than asking “How can we lead with AI?”, the question for many remains “How do we contain it?”

This caution is especially apparent in highly regulated sectors. As JP explains:

“Insurance, for example, is cautiously optimistic. They’re exploring AI but always keeping a human in the loop. Nobody wants to be the company on the front page because a bot denied a claim.”

Strategy, skills and leadership: the missing pieces

So, what’s holding organisations back? According to our data, the top three blockers are:

• No clear strategy – 41% of respondents say their organisation hasn’t defined a direction for AI.
• Skills gaps – while 52% of organisations are offering training, many teams are still catching up.
• Unclear ownership and goals – 34% say there’s no clear owner for AI, and 41% report unclear goals.

“The biggest shift we’re seeing in hiring isn’t just for AI Engineers,” says JP. “It’s for the roles that support AI behind the scenes. Data Engineers, Infrastructure Engineers, platform specialists who can enable the functionality in AWS, Microsoft, Salesforce and so on. That foundation is everything.”

Interestingly, only 12% of organisations are planning to hire an AI leader in the next 12-18 months, which suggests many are still unsure of how to structure their approach.

Agentic AI is coming and workers are wary

As AI tools become more autonomous, the implications for the workforce are getting real. One in four workers in our survey said they’re concerned about job displacement due to agentic AI systems, a tension that may slow down adoption if not addressed head-on.

“This isn’t a tech challenge, it’s a leadership challenge,” says Jack Jorgensen, Data, AI & Innovation Practice Lead from our consultancy arm, Avec. “Organisations need to move beyond fear-based narratives. That means involving their people, investing in relevant training, and being transparent about the intent behind every AI initiative.”

Where to from here?

If there’s one takeaway from this research, it’s that no one has it all figured out, and that’s okay. AI transformation doesn’t have to be perfect to begin. But it does need to begin with purpose.

That means building AI into your strategy, not just your tech stack. It means empowering teams to experiment, not just comply. And it means treating people, their concerns, their skills, and their potential, as central to the journey, not a barrier to it.

If you’re curious to explore more of what we learned from 864 professionals across Australia and New Zealand, you can access the full findings in our free report here.

“AI is a tool and only brings what has been inputted into it,  humans bring creativity and discretion.”

The message from workers is clear: AI won’t replace people, but people who understand how to use AI will be better positioned to thrive.

And right now, most teams are still early in that journey.

Our latest survey of 864 business leaders and tech professionals across Australia and New Zealand shows that while AI is gaining traction in the workplace, the skills needed to use it confidently and responsibly are still catching up.

Training is happening but, for most, it’s basic at best. The result? A lot of curiosity, and a whole lot of untapped potential.

Skill levels are rising… slowly

When we asked participants to rate their current skill level using AI tools:

• Just 2.3% identified as “experts”
• 11.3% said “advanced”
• The majority sat at “intermediate” (36.5%) or “beginner” (43.7%)

This isn’t surprising in such a fast-moving field but it does highlight the need for structured support, especially with AI tools evolving week to week.

“I firmly believe that it’s through knowledge, research, and learning that people are able to develop their AI readiness skills.”

Training is happening, but most of it isn’t sticking

The good news? Most organisations are starting to take action:

• 52.4% of organisations said they’re offering some form of AI training (44.5% limited, 7.9% comprehensive)

But when we asked individuals if they had completed any training:

• 68.2% said “no”
• And just 4.4% had completed “comprehensive” training

Even among those who had received training, only 7.7% found it “extremely relevant” to their work. The disconnect suggests many training efforts are still too broad, too theoretical, or poorly timed.

It’s one thing to roll out training and it’s another to make it useful. Teams need learning that is contextual, practical, and directly tied to how they work.

Confidence gaps are slowing progress

What we’re seeing is a classic enablement gap.

The tools exist. The appetite is there. But without real capability building, usage stays shallow.

And when people aren’t confident, they hesitate or, worse, they misuse the tools. That holds back experimentation and fuels the kind of fear that makes governance trickier than it needs to be.

As one participant put it:

“It will be hard to know whether people have capability and can think strategically when everything is done for them.”

The goal isn’t to create AI experts in every role. It’s to build a workforce that’s comfortable, capable, and ready to use AI with discretion and clarity in ways that support their goals, not distract from them.

So, what should leaders do now?

If you’re serious about using AI to gain a competitive edge, upskilling can’t be an afterthought. It has to be part of your core strategy.

This means:

• Offering hands-on, role-specific learning – not just AI awareness
• Creating space for safe experimentation
• Recognising that enablement is a journey and not a one-off webinar

Because when people feel empowered, not overwhelmed, the quality of AI use goes up and so does trust in your broader business strategies.

Want to find out how your organisation compares? Download the full survey findings here to explore how others are approaching AI adoption, skills, and strategy.

Before planning ahead, it’s important to understand what’s already happening on the ground. AI is no longer just a future trend, it’s part of the everyday reality for many professionals. But how it’s being used (and how it’s being managed) varies widely.

Our latest survey of 864 business leaders and tech professionals across Australia and New Zealand revealed both momentum and misalignment, with many teams using AI regularly, even in the absence of formal strategy or support.

Note: This survey closed on 16 June 2025 and reflects a moment in time in a rapidly evolving space.

AI is already in play and it’s changing how people work

AI is firmly embedded in daily workflows for many. Over two-thirds of respondents are using it for search and research (67.7%), 65.4% for summarising content, and more than half for drafting emails and documents. One in three are even using it for data analysis, with more advanced tasks like coding assistance and multi-step workflows also starting to gain traction.

And when asked whether AI use has led to greater efficiency or productivity, nearly two-thirds (64.7%) said yes, with 15.1% reporting significant improvements.

Cameron Robinson, Head of Enterprise Solutions at Solve by Talent, put it simply:

“The research shows that the vast majority of people are using AI already. We haven’t got an adoption problem. Businesses won’t succeed trying to suppress AI usage. If leaders treat AI for what it is – technology – then many of the tried-and-tested principles for change and risk management will still apply.”

In short: your teams are already moving. The question is whether your strategy and support systems are keeping up.

Control and caution are creeping in

Despite widespread adoption, 38.3% of organisations now have policies in place restricting the use of external AI tools. Another 28.9% say they use tools like ChatGPT and Gemini with minimal governance. It’s clear many organisations are still figuring out how to balance innovation with risk.

Some workplaces are stepping up:

• 12.9% are currently exploring secure, fit-for-purpose AI solutions
• 11% have already developed in-house AI capabilities

But many others are stuck in a grey area, trying to contain AI use without clear plans for enablement.

AI adoption is still in the early stages

While usage is high, formal adoption lags behind. When asked how they’d describe their organisation’s current stage of AI integration:

• Just 4% say AI is fully embedded in their business strategy
• Nearly half (47.6%) say they’re still in the experimental or pilot stage
• 13.5% say they haven’t started at all

And when it comes to frequency:

• 33.7% use AI tools daily
• Another 26.3% use them a few times a week

But only 19.7% report AI being implemented in a few departments, and just 8.7% say it’s widely adopted. There’s a clear disconnect between individual uptake and organisational planning.

Excitement meets uncertainty

Some teams are leaning into AI’s potential, using it for content creation, document management, knowledge sharing, and even code generation or customer support. But there’s still uncertainty around how to scale these use cases effectively.

As one participant put it:

“We’re seeing some exciting use cases, but also a lot of uncertainty around skills, change management, and long-term planning.”

Another flagged resourcing concerns:

“We are using AI and love it, but we are limited in our usage due to budget limitations and lack of experience.”

And then there’s the ongoing question of safety and ethics:

“Although amazing things can be done using AI, the lack of governance and data privacy is deeply concerning.”

AI is already here even if strategy isn’t

The data tells a clear story: adoption is happening from the ground up. It might not be part of your long-term roadmap yet, but your people are using it. They’re testing it. They’re learning. Sometimes with support and often without.

What’s missing is clarity, consistency, and leadership.

Now is the time to catch up. Where to start?

• Establishing a governance framework that enables safe, confident AI use
• Understanding the tools their teams are already using
• Scaling the use cases that work, and ditching the ones that don’t
• Treating AI like any other strategic investment: purposeful, aligned, and people-focused

Curious how your organisation compares? Download our full report here to see the complete findings and discover how teams across Australia and New Zealand are navigating the AI shift.

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, Data, AI & Innovation Practice Lead from our consultancy arm Avec, 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.”

Want to find out more?

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.

Sick of AI events telling you stuff you already know?

We’re cutting through the hype with a real-world look at what’s actually going on.

Join Jack Jorgensen, our in-house AI expert from Talent’s project delivery arm, Avec, and JP Browne, Practice Manager at Talent Auckland as they unpack:

• Where organisations are really at
• What’s holding teams back
• Concern and resistance on the ground
• Why security and trust matter now more than ever
• Early signs of change in workforce planning as a result of AI
• AI readiness: Sector comparison

Register today

AI is changing the way individuals and businesses are approaching work as revealed in Talent’s latest survey report which was released today. The report features insights from over 850 business leaders and technology professionals across diverse industries in Australia and New Zealand. Access the findings HERE.

The survey, focused on six key themes, Perception, Current Use & Adoption, Strategy & Leadership, Skills & Enablement, Barriers & Challenges, and Agentic AI, offer an in-depth understanding of how AI is being implemented today and its implications for the future of work.

Key findings include:

• Only 12% of organisations are planning to hire an AI specialist or leader over the next 12-18 months.
• AI has not impacted workforce planning for 55% of organisations.
• Only 5% of survey participants feel their organisation is responding to the changing AI landscape ‘Extremely well’.
• 90% of business leaders believe AI will positively impact their team’s work in the next 2 years. Whereas only 63% of workers believe AI will positively impact their role in the next 2 years.
• 25% of workers are concerned about job displacement due to agentic AI systems.
• Security or compliance concerns remains to be the biggest barrier preventing teams from using AI more regularly for 46% of respondents.
• 52% of organisations are offering training or upskilling opportunities related to AI.

Matthew Munson, Talent Managing Director NSW, weighed in on what he is seeing in the recruitment market, “AI is reshaping how businesses and individuals approach work, but our latest survey shows there’s still a cautious optimism in the market. While 90% of leaders see AI’s positive impact on their teams, only a small number are actively hiring AI specialists. This gap highlights the opportunity, and urgency, for organisations to build stronger AI capabilities otherwise risk being left behind.”

Jack Jorgensen, Practice Lead – AI, Data & Innovation at project delivery company Avec, said, “AI is fundamentally transforming the workplace. However, there are many unseen challenges. The implementation of large-scale AI projects can necessitate the storage of enormous volumes of data, which in turn requires fast and reliable access. Cloud storage, while convenient, comes with substantial costs which may not be considered in this regard. There are also security considerations evolving at an accelerated pace. There needs to be a greater focus on developing effective solutions and having the right AI leaders in the business to ensure the success.”