Written by Sophie Babic

Australia’s AI adoption gap 

A new Reserve Bank of Australia  survey shows local businesses are still slow to embrace AI. The study of 100 medium and large firms found that organisation-wide AI transformation is a rarity, despite an 80 per cent surge in IT investment over the past decade. Most spending has gone into software, cybersecurity, cloud tools and upgrading core systems. 

AI is only now starting to climb the priority list. Around two-thirds of businesses say they use AI “in some form”. For nearly 40 per cent that adoption is still minimal, typically limited to simple tasks like email summarisation or basic drafting using tools such as Copilot or ChatGPT. 

Just over 20 per cent report “moderate” use, applying AI to areas like demand forecasting or inventory management. Fewer than 10 per cent have embedded AI into advanced functions such as fraud detection. The RBA’s findings reinforce Australia’s reputation as a cautious AI adopter compared with markets like the US. 

AI explores public service integration 

The Australian government is pressing ahead with plans to embed AI across the public service, including potentially using it to draft sensitive documents, such as cabinet submissions and business cases. 

Finance Minister Katy Gallagher says the initiative aims to increase productivity and provide every public servant with access to generative AI tools, via a government-built platform called GovAI Chat, expected to launch in 2026. 

It follows a six-month trial of Microsoft Copilot, which found strong productivity gains and faster workflows. But the trial also revealed serious concerns, with many staff who said AI output was inaccurate and required heavy editing. Some warned it could threaten entry-level jobs, which would particularly affect women, who dominate administrative roles.  

The report also flagged multiple security risks, including Copilot surfacing sensitive data and giving access to documents some users shouldn’t have been able to view. 

Google launches Gemini 3 

Google had unveiled Gemini 3, it’s newest AI model, which is directly embedded into Google Search. The upgrade arrives 11 months after Gemini 2 and keeps Google competitive on key industry performance benchmarks. 

Unlike previous versions, Gemini 3 is already powering several revenue-generating consumer and enterprise products. Users that pay to Google’s premium AI plan can now access the new model through AI mode, which provides generated answers to complex questions. 

The update introduces stronger coding and reasoning capabilities, with a new ‘Gemini Agent’ feature that completes multi-step tasks like organising inboxes or booking travel.  

AI Overview faux pas 

A false online claim that Australia’s pension age will rise to 68 this month was republished by Google AI. 

The incorrect information, originally shared by HIIT5158.com.au, O’Halloran Hill, South Australia, said that the official retirement age would increase from 67 to 68 on 10 November 2025. Google AI surfaced the claim in its AI Overview for some searches, despite the fact that Australia has no official retirement age and people may retire at any time if they have the means. 

A Department of Social Services spokesperson said the government has no plans to change the Age Pension age, which is 67, though applications can be made up to 13 weeks early. Current details on the Age Pension and other payments are on the Services Australia website. Google says the error has since been corrected following queries from 9news.com.au.