Fifth Quadrant, in partnership with the National AI Centre (NAIC), has released the Australian Responsible AI Index 2025, showing clear productivity gains from responsible AI adoption—but also exposing a dangerous gap between organisational confidence and actual implementation.
Productivity Gains Are Real, but Confidence Outpaces Reality
The Index reveals that 30% of Australian organisations are already reporting efficiency improvements, while 29% cite faster access to accurate data for decision-making. Leading organisations are realizing up to 3x greater operational and innovation benefits.
But the findings also highlight a confidence–implementation gap:
- Human oversight – 58% claim confidence, only 23% implement (35pt gap)
- Testing & monitoring – 55% confident, 33% implement (22pt gap)
- Contestability – 57% confident, 30% implement (27pt gap)
In short, many organisations overestimate their maturity—leaving themselves exposed as AI deployment accelerates.
Small Businesses Falling Behind
The Index also shows a sharp divide by organisation size. Only 9% of smaller firms (20–99 employees) reached the Leading stage of responsible AI maturity, compared to 21% of larger enterprises. On average, small businesses scored 7 points lower in responsible AI maturity (40 vs. 47).
By contrast, high-risk AI users (e.g. recruitment, compliance) demonstrated stronger governance, implementing safeguards at nearly double the rate of very low-risk users. For instance, 59% review training data for bias, compared to just 30% among low-risk users.
First National Responsible AI Self-Assessment Tool
Alongside the Index, Fifth Quadrant and NAIC launched Australia’s first Responsible AI Self-Assessment Tool—a national benchmarking platform designed to help organisations align with the Voluntary AI Safety Standard (VAISS) and receive tailored guidance.
“It’s a practical way to understand where you are in your AI journey, benchmark against peers, and receive tailored guidance on your next steps,” said Lee Hickin, Executive Director of NAIC. “Whether you’re just starting out or refining your approach, this tool helps you move forward with confidence and clarity.”
Call to Action
The Index urges greater collaboration between government and industry to bridge the confidence–implementation gap, accelerate tool uptake, and provide tailored support to smaller businesses.
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