A/NZ organisations lead in AI readiness, NetApp report reveals

NetApp has released its 2024 Data Complexity Report detailing how organisations in Australia and New Zealand are strategically positioned to capitalise on the advantages of Artificial Intelligence (AI), owing to their foundational investments in data management.

The report, part of a global study, indicates that 76% of organisations in the Australia and New Zealand (A/NZ) region have optimised their data operations to effectively deploy AI technologies. This contrasts with other global regions where speed of adoption often trumps foundational readiness. A/NZ institutions have prioritised data management aspects, including governance and security, to gain a competitive edge in AI engagements.

Gabie Boko, Chief Marketing Officer at NetApp, stated, "2025 is shaping up to be a defining year for AI, as organisations transition from experimentation to scaling their AI capabilities. This year's Data Complexity Report shows that businesses are making significant investments to drive innovation and efficiency, but these efforts will succeed only if global tech executives can address the mounting challenges of data complexity, security, and sustainability. Intelligent data infrastructure, with unified data storage at its core, will be key to unlocking AI's potential."

Mark Fioretto, Area Vice President and Managing Director of NetApp Australia and New Zealand, commented on the regional focus, "Over the past 12 months, our research has tracked a significant shift in the way business leaders across Australia and New Zealand weigh up the productivity gains of AI against its risks. Executives in Australia and New Zealand have reported a drastic and rapid increase (81 per cent) in the adoption of AI workloads – shifting local organisations from being considered AI Laggards to AI Leaders."

Fioretto further emphasised the strategic approach taken by A/NZ organisations with, "The relatively light tread of Australian & New Zealand organisations at the onset of the AI rush, across government and enterprise, bought more time to regulate the technology and streamline data pipelines to operate it effectively. This may advantage local tech leaders in tackling the new set of challenges brought on by AI in 2025."

The need for substantial investment in AI and associated data management was underlined in the report, with 40% of global technology executives expecting unprecedented investment levels in 2025. While 58% of A/NZ tech leaders anticipate benefitting from increased data optimisation through future AI investments, a significant 81% also foresee new security challenges emerging as a consequence of rising AI adoption rates.

Krish Vitaldevara, Senior Vice President and General Manager at NetApp, highlighted the importance of adopting secure and sustainable data practices: "AI's transformative potential hinges on secure, scalable, and sustainable data strategies. The organisations leading in advanced analytics and AI are those that have unified and well-catalogued data, robust security and compliance for sensitive information, and a clear understanding of how data evolves. By tackling these challenges, they can drive innovation while ensuring resilience, responsibility, and timely insights in the new AI era."

Globally, 79% of tech executives recognise the crucial role of data unification in achieving AI success. The trend towards unified data storage aims to dismantle data silos, thus enhancing access and application across hybrid environments.

The report also addressed the environmental impact of AI, noting that AI-driven data growth could counteract sustainability efforts due to the significant energy requirements of AI operations. This was highlighted by the anticipation of changes in corporate sustainability processes, as well as potential shifts in government energy policies and investments.