Turning AI Hype into Real Business Value

AI is everywhere! In our news feeds, on conference stages, in our work and social conversations.

According to the latest AI adoption tracker data, in Australia large organisations are continuing to lead AI adoption, compared to 68% adoption rate for Medium Businesses and under 40% for small businesses.

But here’s the uncomfortable truth: while AI technology spending is soaring, productivity gains just aren’t there.

McKinsey calls this the “productivity paradox”—companies are buying technology faster than they’re learning how to use it effectively.

So, how do you make AI work for real business value.  It would appear this is as relevant to large global organisations as well as Small and Medium Enterprises (SME’s) across Australia. 

The Productivity Paradox Explained

According to McKinsey research, only about 1% of organisations describe themselves as “mature” in AI deployment.

That’s staggering when you consider that it is predicted that AI spend in Australia alone is going to reach up to $3.5billion in 2025.

The gap between investment and realised impact isn’t about bots or algorithms—it’s about how you execute.

Does that mean that 99% of organisations adopting AI are treating it just as an additional tool rather than a catalyst for AI-driven business growth? There are lots of examples of organisations running pilots but then stalling when it’s time to scale.

Why? Because implementing AI in the first place and then being able to scale the use of AI to create value requires more than technology.

Applying the McKinsey’s Triple the Return Framework to SMEs

Top-performing companies generate up to three times more value from their technology investments—not by spending more, but by executing better. Here’s how:

1. Reimagine the Business

   What does the future in your industry look like?

   What if you looked at AI as a growth engine, not a support function?

   Start with identifying AI use cases that align with your strategic goals, whatever they are, maybe it is about boosting efficiency, enhancing customer experience, or creating new revenue streams.

   
   

2. Rewire for Speed and Scale

   You will need to get expert advice on the state of your data architecture, what needs to be done to build the data architecture for the future and AI-ready platforms. This may sound scary or costly.... chances are there are already platforms in your technology landscape you could be tapping into.  But it isn’t just about infrastructure, you need to be able to experiment and then scale up.
   

3. Most importantly – don’t forget the humans!

   One of the biggest barriers to SMEs adopting AI is lack of training and capability. Upskill your people!

   Yes, AI will change how we work; it isn’t replacing humans, it’s augmenting them. Every employee should understand how AI enhances their role and how to collaborate with intelligent systems.

The Big Picture

AI transformation isn’t just about technology.  

It’s about future-proofing your business in a world where others will be redefining services. It’s about playing the long game.  It’s not just about taking a bigger slice of the pie now; it’s about baking a bigger pie altogether.

Actionable Steps for SMEs

• Just start small but think big picture. Identify one or two high-impact use cases that are relevant to your business.

• Be clear on how AI will make a difference to your business.

• Invest in data hygiene. The saying garbage in, garbage out still applies to AI.

• Build AI capability: Short, practical training, relevant to your business beats long theoretical courses.

Call to Action: Are you ready? Start by asking: Where can AI create real value for my customers and my people? The answer might surprise you.