73% of companies expect positive business AI returns within three years, but strategic adoption gaps risk leaving millions on the table
AUSTRALIA, Sydney — 10 October 2025 — Australian organisations are already achieving a 15% return on their business AI investments, yielding an average return on investment this year of US$3.2 million on an average US$19.1million spend, according to a new study by SAP SE (NYSE: SAP). The global research, ‘The SAP Value of AI Report,’ undertaken by Oxford Economics, also found ROI is expected to nearly double to 29% within two years, translating to an average return of US$8.2 million per organisation.
Angela Colantuono, President and Managing Director, SAP Australia and New Zealand said, “AI isn’t what’s next, it’s here now and it’s already delivering results. But doing AI well takes more than hype. Businesses investing strategically in people, data and AI are already unlocking measurable ROI. With nearly three quarters of organisations expecting returns within three years, the message is clear: this is only the beginning. AI will get smarter, faster and more transformative from here.”
AI-First Business Expectations
The report shows that AI is already supporting a quarter of business tasks, a proportion expected to reach 41% within two years. Nearly two thirds (62%) are finding AI effective in helping their business overcome key organisational challenges. Benefits include seeing significant improvement in driving insights and decision-making, engaging with customers and prospects and improving time to value.
The majority of Australian respondents expect AI to become central to business processes, decision-making and customer offerings by 2028, a year ahead of their global peers. Only 3% of businesses say AI will never become a core part of how they operate.
“We’re witnessing the biggest business transformation since the internet,” added Colantuono. “The question isn’t whether AI will transform your business, it’s whether you’ll lead that transformation or be transformed by your competitors.”
The US$19 Million Question: Are Australian Businesses Thinking Too Small?
Despite these positive signs, the study also reveals Australian business AI spend being significantly outpaced by global peers. Compared to the average US$19.1 million Australian spend, Chinese organisations lead the way with an average US$42 million spend, with US$37 million as the average US spend.
“This isn’t just about technology, it’s about competitive survival. Those that don’t crack the AI code now risk being left behind for good. In addition to boosting revenue, AI is about building smarter operations and empowering people to focus on the work that matters,” continued Colantuono.
The Game-Changer: AI Agents
The next frontier, agentic AI, could further revolutionise business operations entirely. A key finding of the report was that these intelligent, autonomous systems that can plan, act and collaborate on complex business processes, are expected to deliver 10% ROI, equating to an average of US$3 million, for Australian organisations in the next two years.
Interestingly, at present, only 6% of Australian businesses are fully prepared for AI agents, but 75% recognise their transformative potential.
The Strategic Crisis Hidden in Plain Sight
When it comes to AI adoption, alignment with business strategy is ranked the most important factor for optimising ROI. However, the research shows this is just one of a range of make-or-break areas where organisations are falling short:
- Business Strategy: Only 10% of Australian businesses are investing in AI in a strategic and holistic manner, with the majority taking a piecemeal approach (46%) or leaving it to individual departments (32%).
- Data Readiness: Despite 64% claiming sufficient data readiness for AI, critical departments like legal (84%), finance (74%), and HR (67%) flag they remain unprepared.
- Skills Investment: Over two thirds (68%) believe insufficient AI skills are a key reason organisations are not gaining maximum ROI for AI. That said, 73% note that they are integrating AI into their workforce planning by upskilling or reskilling current employees.
When a coordinated AI strategy is left by the wayside, not only are opportunities impacting the bottom line similarly discarded, but security risks prevail. Three quarters of Australian organisations surveyed are concerned about “shadow AI”, where employees use unauthorised AI tools. According to 69%, Shadow AI is being used at least occasionally by employees.
“When organisations take a strategic approach aligned with their long-term vision, building AI into the fabric of how they operate, it deters shadow AI use and elevates the most powerful competitive weapon at their disposal,” concluded Colantuono. “Organisations with strategic AI adoption are seeing faster implementation across business functions and significantly higher returns, while future-proofing themselves to keep pace with rapid changes across the tech and business landscapes.”
About the Research
The SAP Value of AI Report, conducted by Oxford Economics, surveyed 1,600 business leaders across eight countries, including 200 Australian executives from enterprise and mid-market companies.
Customers using SAP Business AI include Lion Group, SA Power Network and Energy Queensland.
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About SAP
As a global leader in enterprise applications and business AI, SAP (NYSE:SAP) stands at the nexus of business and technology. For over 50 years, organizations have trusted SAP to bring out their best by uniting business-critical operations spanning finance, procurement, HR, supply chain, and customer experience. For more information, visit www.sap.com.
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