How AI is revolutionising workplace productivity for Australian businesses

By giving employees the right tools to innovate and adapt, businesses can unlock new opportunities and remain at the forefront of workplace transformation, writes Helen Masters.

In today’s rapidly evolving business landscape, harnessing the power of AI in the workplace has become a game changer for productivity and efficiency. As organisations strive to stay competitive, AI solutions are no longer a luxury but necessary for fostering adaptability, improving workflows, and enhancing decision-making processes.

In Australia, companies are increasingly turning to AI-powered solutions to optimise operations. A recent LinkedIn and Microsoft report highlights that 84 per cent of Australian workers now use AI to enhance productivity and creativity, making Australia a global leader in AI adoption, ahead of Europe and North America. This shift is transforming workflows and reshaping the labour market, positioning Australian businesses as frontrunners in innovation.

The evolving landscape of AI in the workplace

Australia is unique in its adoption of AI. While global corporations often lead large-scale AI investments, Australia’s mid-sized companies and start-ups play a crucial role in AI innovation. The nation’s strong technology ecosystem, supported by government initiatives such as the Australian AI Action Plan, drives innovation and accelerates AI adoption across industries.

Businesses must balance top-down AI strategies and bottom-up innovation to fully harness AI’s potential. With innovation at its peak in 2025, businesses are increasingly looking for ways to boost efficiency and drive growth. AI presents a solution by enabling organisations to “do more with less”. For example, AI-driven workflow automation can streamline invoice processing, customer service inquiries, and project management. In retail, AI-powered demand forecasting helps businesses manage inventory more effectively, reducing waste and improving supply chain efficiency. Similarly, AI detects fraud, assesses risks, and enhances customer interactions in the financial services industry.

The role of AI in workplace collaboration

Our work has evolved, but the challenges remain in new forms. Teams today are navigating increasingly complex workflows, juggling more tasks, dependencies, and content across distributed environments. Yet, many still rely on outdated tools that are not designed for the speed and flexibility of modern work demands. In practice, collaborators waste time tracking down scattered information across multiple platforms. Work managers struggle to understand project progress clearly without constant check-ins. Leaders and executives lack real-time, data-driven insights to effectively align people, skills, and processes for strategic decision making.

With hybrid and remote work becoming the norm, businesses are using AI-powered work collaboration tools to enhance productivity. Platforms like Smartsheet use AI to streamline workflows, automate repetitive tasks, and provide real-time visibility into projects, ensuring greater accountability, efficiency, and agility. AI-driven solutions are particularly valuable in industries where cross-functional collaboration is critical, such as mining, construction, healthcare, and professional services. By reducing friction in teamwork, these tools empower businesses to operate more responsively and strategically in an increasingly digital workplace.

Overcoming AI adoption challenges

While AI offers significant advantages, businesses encounter several hurdles when implementing AI-driven solutions. A primary concern is ensuring ethical and transparent deployment. With growing scrutiny around data privacy, algorithmic bias, and regulatory compliance, such as following protocols formed by government agencies, organisations must embrace responsible AI practices to foster trust among employees and customers.

Security is another critical challenge. As AI systems process vast amounts of sensitive data, they become prime targets for cyber threats, including data breaches, adversarial attacks, and model manipulation. Organisations must implement robust cyber security measures, such as encryption, access controls, and continuous monitoring, to safeguard AI-driven operations and maintain data integrity.

Lastly, organisations must continue focusing on reskilling and upskilling their employees with the new technology to ensure they have the skills necessary to navigate the complexities of AI-driven solutions. This includes developing technical skills and human-centric abilities, such as creativity and problem solving. Continuous learning is key, as it equips the workforce with the necessary tools and knowledge to adapt to evolving technologies and workflows. Upskilling initiatives foster individual growth and ensure businesses remain competitive and resilient in an increasingly dynamic and complex environment.

Businesses should ensure that AI solutions are scalable and adaptable to their needs. AI is not a one-size-fits-all technology; successful implementation requires aligning AI tools with business objectives and employee workflows. Companies that take a strategic approach to AI adoption – integrating AI into their existing processes rather than attempting to overhaul their operations overnight – are more likely to see long-term benefits.

AI is not just about automation; it’s about augmentation. By giving employees the right tools to innovate and adapt, businesses can unlock new opportunities and remain at the forefront of workplace transformation.

Helen Masters is the managing director (APJ) at Smartsheet.