Australia is currently lagging in the adoption of generative AI technologies, according to Gavin Jones, the Country Manager for Elastic in Australia and New Zealand. Jones has raised concerns that this delay could have serious consequences for Australia’s competitive position in the global market.
In a recent discussion with TechDay, Jones underscored the transformative potential of generative AI while expressing unease over Australia’s relatively slow uptake in comparison to its regional and global counterparts. He stressed the urgent need for Australian businesses to accelerate their adoption of generative AI, noting that the technology represents more than just a passing trend. “Generative AI is not just a trend; it’s a fundamental shift in how businesses operate and compete,” Jones stated.
Elastic, a company renowned for its search AI capabilities, plays a significant role in powering various digital experiences, from booking accommodation to managing finances. With its technology downloaded over 4.6 billion times and currently supporting 50% of Fortune 500 companies, Elastic has a global footprint. Despite this, Jones pointed out that Australian organizations are notably behind in embracing these technologies. He cited statistics revealing that only 42% of Australian businesses have adopted generative AI, compared to 63% in Singapore and 81% in India. According to Jones, this disparity places Australia at a substantial competitive disadvantage in an increasingly AI-driven world.
A recent report commissioned by Elastic highlighted a significant gap between the intentions and actions of Australian businesses. While 87% of organizations plan to increase investment in AI this year, only 21% are actively trialing it for internal purposes. This gap, Jones argued, reflects the challenges that need to be addressed to accelerate adoption. “There are key barriers like hallucinations, biases, security, privacy, and regulatory concerns, as well as a shortage of skilled professionals,” he noted. However, despite these obstacles, the transformative potential of AI is widely acknowledged.
The Australian government’s Tech Council has set ambitious goals, aiming to increase the AI workforce by 500% by 2030 to meet the growing demand for 200,000 professionals. Jones highlighted that this initiative could contribute over $115 billion to the Australian economy. He identified key areas where AI could have the most significant impact, including customer experience, operational efficiency, and cyber resilience.
Jones also emphasized the critical role of AI-driven security in detecting and investigating threats more swiftly, enabling businesses to respond before these threats cause substantial damage. “It’s essential to recognize that AI is only as effective as the data it’s trained on and the business context it’s given,” he explained. Elastic, he noted, provides businesses with the ability to securely access their private data while utilizing multiple generative AI applications. This approach is particularly crucial for Australia’s fastest adopters, who are poised to shape the future of this transformative technology. “The seamless communication between data and generative AI will be key,” Jones added.
In discussing Elastic’s broader strategy, Jones emphasized the company’s focus on search AI as the cornerstone of its value proposition. “We see ourselves as the search AI company,” he stated. Elastic’s platform, built on an open-source core, offers three essential capabilities: search, observability, and security. These capabilities are vital for managing the uptime, availability, and performance of applications, as well as ensuring robust security measures.
Jones elaborated on the concept of observability, explaining that it encompasses not just the performance of applications but also the identification and swift response to internal security vulnerabilities. He highlighted that Elastic’s platform provides a unified solution, enabling businesses to transition from incident to insight within milliseconds, setting it apart from legacy competitors. “We’re open-sourced at our core, and we’ve been leveraging machine learning and AI for over 10 years,” he added.
According to Jones, the integration of generative AI into business contexts involves more than embedding the technology into existing applications. It requires blending confidential data with the array of large language models (LLMs) and copilots within the generative AI ecosystem. Elastic differentiates itself by bridging the gap between confidential data and various generative AI solutions, allowing businesses to derive unbiased insights and select the most appropriate tools for their specific needs.
Jones also acknowledged the crucial role of customer feedback in driving Elastic’s product development, particularly in building out its security and observability platforms. “The value is really in the platform, and we’re constantly evolving based on how customers are using our technology,” he said. Partnerships with major hyperscalers like Microsoft, Google, and AWS are also central to Elastic’s growth strategy, offering its solutions on all major marketplaces. Additionally, Elastic provides the flexibility for customers to run on-premises, which is especially important for sensitive security or sovereignty-related use cases.
Looking ahead, Jones expressed optimism about the future of generative AI in Australia. “We’re excited to be part of this transformation,” he concluded, noting that the potential applications of generative AI are vast and limited only by the imagination of their customers. With customers increasingly approaching Elastic with innovative pilots, Jones anticipates continued growth and the enabling of more groundbreaking use cases in the future.
