Shifting AI from activity to outcomes in the year ahead

New research from Elastic shows that one in three Australian businesses exceeded their AI budget last year, and almost a third have already paused or wound back deployments because the cost could not be justified by the output. Half of them are still planning to increase spending in the next 12 months. 

But more spending alone will not fix the problem. The data points clearly to where the work actually needs to happen. These are the five things every business leader should prioritise in the year ahead.

1. Stop measuring AI activity and start measuring AI outcomes

Our research found that only 8% of Australian businesses are tracking whether AI is delivering real revenue or cost savings. More organisations track AI usage rather than actual business outcomes.

This is the most urgent shift leaders need to make. Usage dashboards that show how busy your AI is are not the same as proof that your AI is working. Before you increase spending in the year ahead, define what success actually looks like in business terms: cost savings that show up in the books, revenue that can be attributed, and productivity gains that free up real capacity. If you cannot connect AI activity to a business outcome that a CFO can act on, you do not have a return on investment story. You have an activity story.

The practical starting point is to pick two or three AI use cases where you can draw a straight line to a measurable outcome, instrument them properly, and build your evidence base from there. Broad deployment without measurement is how budgets overrun and boards lose confidence.

2. Do the unglamorous data work before anything else

There is a glaring contradiction in how local businesses approach AI: a striking 72% of Australian businesses rushed into deployments without establishing a formal data-readiness baseline first. Yet, when these systems inevitably underperform, leaders are twice as likely to attribute poor AI performance to poor data quality (32%) over limitations in the underlying AI models (14%).

Data readiness is not an exciting agenda item. It does not generate a compelling slide for the board. 

But the single highest-impact investment you can make in AI performance is ensuring data relevance. When an AI system is fed low-quality, redundant, or poorly scoped information, the model has to work twice as hard to separate the signal from the noise. You are essentially paying to process data that should have been filtered out in the first place.

Fixing the data foundation is not about slowing down AI deployment. It is about making AI efficient enough to actually justify what you are spending on it.

Practically, this means understanding where your data lives, assessing whether it is accurate and fit for purpose, and eliminating duplication before it reaches the model. The organisations that do this work will spend significantly less per query and get significantly better outputs.

3. Build observability before you scale agents

Only 31% of Australian businesses have a centralised view of how many AI agents or autonomous workflows are running across their organisation. Yet, 50% plan to expand agent use in the coming 12 months. Only 2% have a formal incident response process for AI.

That gap is where the next wave of AI problems will come from.

Agents are not like software you deploy and monitor through conventional means. They take real actions, in real systems, often without a human in the loop. If you cannot see what they are doing with full logging and clear attribution, you cannot govern them, and you will not be able to explain a failure when it happens.

The right sequencing is to build the observability infrastructure first, then expand agent use, not the other way around. This means usage logging, monitoring, regular risk reviews, and a clear incident response process before you give autonomous AI a wider remit. The productivity upside of agents is real. But it is only accessible to organisations that can govern what they have deployed.

4. Consolidate your data platform

Most enterprise AI inefficiency is fundamentally a fragmentation problem. When critical business data runs on completely separate, disconnected datastores, every single AI query pays a hidden tax in both computing power and operational visibility. Information has to be constantly moved between systems, vital context gets lost in translation, and no single team has a clear picture of what the AI is actually doing or costing.

Consolidating onto a unified data architecture is not just a technology preference; it is a critical business decision that improves efficiency across the board. Streamlining your data infrastructure eliminates the operational lag and security blind spots created by disconnected systems. It also gives your AI models immediate access to full enterprise context without heavy processing overhead.

This is also where technology leaders can recover real budget to fund future innovation. Streamlining overlapping point solutions and rationalising legacy vendors allows organisations to free up capital for AI investments intentionally, creating fiscal headroom without creating new operational silos.

5. Keep innovating, but invest in the people alongside the technology

Cost discipline and innovation are not opposites. The goal of getting the data foundation right, building observability, and measuring outcomes properly is not to restrict AI's potential. It is to make AI efficient enough that every dollar spent has a genuine chance of delivering a meaningful return.  

The research shows that where AI successfully manages routine and repetitive administrative tasks, three-quarters of businesses report their people are redirecting freed-up time toward higher-value work. Staff are shifting their focus toward strategic planning, new product development, customer engagement, and proactive upskilling.

Furthermore, the data highlights a strong and growing demand for specialised technical capability. Far from halting recruitment, 45% of organisations anticipate creating entirely new, AI-focused positions within their businesses, with 18% already actively hiring for these roles. 

The businesses that come out ahead in the year ahead will be the ones that invest in both the AI foundation and the people who work alongside the technology. This collaboration is where compounding returns live, and where the real competitive gap opens up.

The reset that this year demands

None of these five things is especially complicated. What they have in common is that they require discipline over novelty: doing the foundational work before chasing the next capability, measuring outcomes before celebrating adoption, and building governance before scale.

The organisations that treated last year as a year of AI experimentation now need to treat the next 12 months as a year of AI accountability. The data is clear on what went wrong. The path forward is equally clear for those willing to take it seriously.

About the research

The Elastic AI cost research, conducted by PureProfile, surveyed over 500 senior decision-makers at Australian organisations with 50 or more employees that are currently using, formally or informally deploying, or piloting AI tools. All respondents are either final decision-makers or strong influencers and recommenders on AI, data, or digital transformation in their organisation. Fieldwork was conducted in June 2026.