What is the hidden cost of Australia’s digital complacency?

Australian businesses must embrace AI adoption with urgency to bridge the growing digital transformation gap and enhance global competitiveness

Australian businesses face a reality they may not want to acknowledge. While local companies debate the merits of AI adoption, their Asian counterparts have moved from discussion to implementation, gaining ground daily. The gap isn’t measured in technological capabilities – it’s a fundamental difference in how businesses view competition and urgency.

Colin Priest, a NEXUS Fellow in the School of Risk and Actuarial Studies at UNSW Business School, has worked across both regions in a career that encompasses several CEO and general management roles working on projects across financial services, healthcare, security, oil and gas, government, and marketing. After 15 years working in Asia, Mr Priest returned to Australia in 2024 and observed that the comfortable assumptions that protected Australian businesses for decades – geographic isolation, resource advantages, and stable markets – no longer provide refuge in a digitally connected world.

The Australian digital transformation gap

“In Asia, competition is typically viewed on an international scale, whereas in Australia, competition tends to focus more on sports than global business,” he explained. This observation pointed to a deeper issue affecting Australian competitiveness.

Living in Singapore exposed Mr Priest to businesses that maintained constant vigilance about global competitors. The local term “kiasu” captured this mindset perfectly, reflecting an inherent fear of falling behind. “Despite lower labour costs, Asian businesses proactively leverage AI to drive productivity and reduce expenses through automation,” Mr Priest noted. This proactive stance contrasted sharply with what he witnessed back home.

Australia’s geographic isolation contributed to this complacency. The nation’s historical success as the “lucky country” created a false sense of security that left businesses vulnerable to disruption. “This mindset risks leaving Australian businesses behind globally,” Mr Priest warned. Yet he remained optimistic, drawing on Australia’s track record of technology adoption. “Australians have historically embraced new technologies enthusiastically, giving me optimism that we will adapt and leverage AI effectively once we move beyond initial fears.”

Building human-AI collaboration in the workplace

While there is much concern about AI replacing human workers, Mr Priest challenged this narrative with economic logic. “The notion that AI will entirely replace humans is mostly fear-driven and economically misguided,” he stated. His argument rested on fundamental economic principles that many overlooked in their panic about automation.

He explained that comparative advantage, not absolute advantage, drove economic systems. This principle ensured human relevance even if AI excelled at specific tasks. “Additionally, people need meaningful employment to sustain consumer-driven economies,” he added, highlighting the circular nature of economic systems that require human participation.

The social dimension proved equally important. Mr Priest explained how humans crave authentic interactions in ways machines can’t replicate. “We crave genuine interactions – whether it’s seeking comfort from loved ones during challenging times, preferring face-to-face shopping experiences, or valuing handmade art over AI-generated pieces,” he observed. These preferences shaped how businesses should approach AI integration.

Learn more: How AI is changing work and boosting economic productivity

His experience as an actuary illustrated this perfectly. “I know how critical human empathy is when handling sensitive insurance claims, such as those involving the loss of a loved one,” Mr Priest reflected. The thought of algorithmic decisions replacing human compassion in such moments seemed not just impractical but unethical. “No one wants their personal tragedy addressed impersonally by a robotic voice or algorithmic decision without human oversight.”

For professionals preparing for this collaborative future, Mr Priest identified a number of essential skills. Critical thinking topped his list, enabling workers to identify when AI outputs might mislead. Communication skills remained vital for conveying ideas that resonated with others. Creativity allowed professionals to develop solutions beyond AI’s predictive capabilities. Flexibility helped them adapt to rapid technological changes. Finally, influence enabled them to inspire and motivate teams effectively in this new landscape.

Removing customer experience friction through technology

Mr Priest’s philosophy on technology implementation focused on enhancement rather than replacement. His personal experiences illustrated how businesses often failed this test. He recounted a simple but effective example of how activating data roaming during a recent Sydney business trip triggered immediate charges that alarmed him. “The provider’s mobile app failed me, forcing an inconvenient and expensive international call to manually set up a roaming plan,” he recalled. This friction damaged the customer relationship and wasted valuable time.

Banking provided another example of unnecessary complexity. Setting up a business account in Singapore revealed outdated procedures that frustrated Mr Priest. The traditional bank required extensive paperwork and weeks of waiting, only to reject his application despite his decade-long personal banking relationship with them. “Turning instead to a digital bank streamlined the process – within an hour, I was fully operational, illustrating how technology can significantly enhance the customer experience,” he explained.

These experiences shaped Mr Priest’s approach to technology implementation. “Reducing friction means automating time-consuming and unnecessary processes, allowing humans to engage in more valuable and empathetic interactions,” he stated. The goal wasn’t replacing human contact but eliminating barriers that prevented meaningful engagement. Technology should make experiences smoother and more enjoyable, not impersonal or frustrating.

Navigating career pivots in the AI era

Mr Priest’s career trajectory demonstrated adaptability in action. Moving from actuary to data scientist to CEO to educator has required more than technical skills. It demanded a fundamental shift in professional identity, he explained: “Successfully repositioning yourself professionally hinges on defining your core identity and motivation beyond specific job titles or roles.”

Being a “problem solver” has also provided an important level of flexibility across industries. This broad label allowed movement between sectors without the constraints of narrow professional definitions. “Professionals should embrace flexible, transferable labels rather than restricting themselves to narrow, industry-specific identities,” Mr Priest suggested. This approach opened doors that rigid categorisation would close.

Subscribe to BusinessThink for the latest research, analysis and insights from UNSW Business School

Storytelling emerged as another crucial skill for career transitions. Mr Priest emphasised the importance of “convincingly sharing experiences where you delivered meaningful outcomes, even without prior domain expertise.” These narratives proved adaptability and impact more effectively than credentials alone. Learning industry language and culture demonstrated a commitment to new fields. “Authentic narratives showcasing adaptability and impact can make professionals appealing candidates for diverse roles and sectors,” he explained.

His framework for entering new industries relied on curiosity developed through challenging circumstances. Growing up in Western Sydney and attending a school “consistently ranked in the bottom 30%” forced self-reliance and perpetual learning. This background became an asset, allowing fresh perspectives without attachment to established practices.

Cultivating curiosity and passion for future success

Mr Priest’s appointment as a UNSW NEXUS Fellow brought his journey full circle, allowing him to share insights with the next generation. His advice to students and graduates centred on two qualities that transcended specific skills or knowledge. “Developing curiosity and passion is essential for sustained success and fulfilment in your career,” he stated.

Curiosity drove continuous learning and exploration, opening doors to opportunities others might miss. Passion provided the fuel for perseverance through inevitable challenges. These qualities mattered more than technical expertise in a rapidly changing world. “By nurturing curiosity and passion, you position yourself to connect meaningfully with others and drive impactful change throughout your professional journey,” Mr Priest advised.

In this framework, education served as more than credential collection. He urged students to “view it as a platform for expanding your perspective and refining these essential qualities.” This approach transformed learning from a transaction into a transformation, preparing graduates for careers that might not exist yet, Mr Priest concluded.