• New Schneider Electric research shows 67% of executives see automation as critical to competitiveness, yet many face financial and technical barriers to adoption.

• Half of respondents expect AI investments to pay off within three years, but a gap remains between strategic intent and operational readiness.

• AI adoption is accelerating in sustainability-focused areas, led by smart building control, sustainability reporting, and energy forecasting.

• With the first sustainability reports set to be released this year, businesses must strengthen data integrity and digital capability to meet new reporting standards.

Australian businesses are accelerating their adoption of automation to stay competitive, but new research from Schneider Electric shows many still face significant barriers to realising the full potential of artificial intelligence (AI).

Findings are based on Schneider Electric’s 2026 Energy Tech Pulse survey, which surveyed Australian decision-makers across multiple industries to understand how economic, energy, and technology trends are shaping investment priorities. The results show strong momentum for automation and AI, but also highlight financial, technical, and capability gaps slowing progress in critical sectors.

According to the survey, Australian businesses are embracing automation as a core strategy for competitiveness, with 67% of leaders calling it essential for success. Yet progress is uneven: while half of Australian businesses expect AI investments to pay off within three years, many face roadblocks, from upfront costs and cybersecurity concerns, to limited technical skills and uncertainty about integrating new systems, revealing a clear gap between strategic intent and operational readiness.

“These insights demonstrate that Australian businesses clearly see the value of automation and AI in driving efficiency and competitive advantage,” said Farokh Ghadially, Vice President IT and Datacentres, Schneider Electric.

“However, cost pressures and capability gaps are slowing the pace of progress. The challenge now is to make digital tools more accessible and scalable, so that organisations of every size can capture the full benefits of automation.”

AI transforming energy and sustainability management

Despite these challenges, the survey revealed that AI adoption is advancing fastest in areas where efficiency, energy management, and sustainability intersect. Smart building control has emerged as the leading application, with 38% of respondents identifying it as a top priority, followed by sustainability reporting (29%) and energy forecasting (24%), highlighting strong links between automation, efficiency, and decarbonisation.

Looking ahead, business intent is strong: over the next three years, four in ten leaders plan to implement smart building solutions and battery energy storage, while a third intend to deploy electric vehicle charging infrastructure, signalling a broader shift toward digital and electrified systems designed to improve efficiency and operational resilience.

“As technology continues to evolve, automation will be the foundation of a more resilient and sustainable economy,” Ghadially added. “With the first round of sustainability compliance reports to be released this year under Australia’s Sustainability Reporting Standards, businesses are entering a new era of accountability that goes far beyond compliance.

“To prepare, organisations will need accurate, auditable data and digital systems capable of turning complex sustainability metrics into actionable insights. As an energy technology partner, we see everyday that the businesses who succeed are those that combine innovation with capability, and who use AI to strengthen data integrity, improve transparency, and turn digital ambition into measurable impact.”

About Schneider Electric 

Schneider Electric is a global energy technology leader, driving efficiency and sustainability by electrifying, automating, and digitalising industries, businesses, and homes. Its technologies enable buildings, data centres, factories, infrastructure, and grids to operate as open, interconnected ecosystems, enhancing performance, resilience, and sustainability. The portfolio includes intelligent devices, software-defined architectures, AI-powered systems, digital services, and expert advisory. With 160,000 employees and 1 million partners in over 100 countries, Schneider Electric is consistently ranked among the world’s most sustainable companies.

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