• Datacom’s report shows Australians are open to adopting AI for productivity but lack tech literacy, with more than two thirds of employees (71%) wanting to upskill.
  • A human-centred approach to AI adoption is essential, focusing on transparency, ethical design and augmenting human capability rather than replacing it.
  • Coordinated action across government, industry, and education — including incentives, sovereign AI investment, and balanced regulation — is critical to move from being digitally enabled to digitally empowered.

One in six Australians consider themselves as having low tech literacy and seven in ten want to improve their tech skills, according to a new report from Datacom.

The report, The Productivity Pivot: AI, People and the Future of Work, reveals Aussies are a nation open to using artificial intelligence (AI) to improve productivity, but are unprepared for its rapid rise – bringing to light the urgent need for digital upskilling. 

According to the report, 16% of Australians consider themselves as having low tech literacy, 71% want to improve their tech skills, 73% believe AI will boost their efficiency, and an overwhelming majority of 89% see adopting new technology as key to lifting national productivity.

Laura Malcolm, Managing Director of Datacom Australia, said the country is at a crossroads when it comes to improving productivity, with tech adoption vital to shift the dial. 

“Productivity growth has stalled, and the pressure to do more with less is mounting. Agentic AI presents a timely opportunity to reverse this trend by augmenting human capability, but only if we bring people along on the journey and also evolve our ways of working,” she said. 

“Public discourse has often centred on the risks of AI, which left a lasting impact on perceptions of automated decision-making systems.  

Laura Malcolm
Datacom Australia Managing Director Laura Malcolm: "Productivity growth has stalled, and the pressure to do more with less is mounting. Agentic AI presents a timely opportunity to reverse this trend by augmenting human capability."

“This legacy of mistrust highlights the importance of transparency, accountability, and ethical design. If we want to use AI to its full potential, we must rebuild public confidence - ensuring systems are fair, explainable, and aligned with human values.” 

The report advocates for a human-centred ‘techno-social’ approach to AI adoption, using AI in a way that augments and complements human capability, not just adapting the tools we use but also evolving our ways of working. 

“Datacom has adopted AI across its own teams and functions and in its customer projects and currently has more than 90 AI initiatives and its own genAI chat tool, developed inhouse, for all of its staff to use.” 

Malcolm says the successful rollout of AI projects and initiatives across Datacom has been underpinned by a cohesive, coordinated approach with an AI governance team in place to oversee developments and implement the AI guardrails. 

To accelerate AI adoption and productivity, Datacom recommends three key policy levers: 

  • Incentivisation: Grants, subsidies, and tax breaks to support AI investment and AI upskilling/reskilling. 
  • Procurement: Government-led investment in sovereign AI capability. 
  • Regulation: A lighter-touch approach, as proposed by the Productivity Commission, balanced with public trust and transparency. 

“AI offers a real opportunity to reshape productivity in Australia. To make that happen, we’ll need coordinated action across government, industry and education,” Ms Malcolm said. 

“The focus should be on creating models where AI augments the work that people do, not replaces it. Upskilling and reskilling is an essential part of this approach, so Australians understand how to make the most of AI technologies. We also need to ensure that we adapt processes and adopt new ways of working to harness the full potential of AI, hybrid working and emerging technologies.”  

“With the right policy settings, we can move from being digitally enabled to digitally empowered.” 

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