State of Enterprise AI
in Australia — Q2 2026
Executive Summary
National Score
61.4
out of 100
Australia's enterprise AI maturity crossed 60 for the first time in Q2 2026, reaching a national composite score of 61.4/100 — placing the country firmly in the Maturing band. All four dimensions improved quarter-on-quarter. Investment leads at 72.3, while Governance remains the lagging dimension at 54.1.
The gap between Investment (72.3) and Governance (54.1) is the most consequential structural risk in the current landscape — organisations are deploying faster than they are governing, a pattern that historically precedes a regulatory inflection point.
National maturity crossed 61 — a new high
Australia's composite AI maturity score reached 61.4 in Q2 2026, up from 59.2 in Q1 — the first time the national score has crossed the 60 threshold. Investment (72.3) and Adoption (68.2) are the engines.
Governance improving but remains the weakest dimension
Governance rose from 50.3 to 54.1 QoQ, driven by new APRA AI guidance and increasing DIGI AI Safety commitments. However, it remains 14 points below Investment — a gap that represents systemic risk.
Retail governance is a rising risk
Retail's Governance score of 44.8 is the lowest across all six industries and 9.3 points below the national average. As AI deployment in retail accelerates (71.3 Adoption), the governance gap is widening.
National Index
Q2 2026 — Dimension Scores
Industry Rankings
Industry Rankings
LiveLatest · Composite score out of 100
Banking retains its #1 position with a 73.2 composite score, driven by record AI investment in fraud detection and credit risk. The ASIC mortgage-bias inquiry is the one cloud on an otherwise strong quarter.
Insurance holds #2 at 66.4, with IAG's claims triage deployment the standout signal. APRA's QBE remediation notice is a governance reminder for a sector moving fast on investment.
Retail's #3 position (62.1) masks a serious governance deficit — at 44.8, the lowest in the index. The ACCC dynamic pricing inquiry arrives precisely as adoption accelerates.
Government ranks #4 at 58.7 — its governance strength (72.4, highest in the index) is held back by the lowest investment score (48.3). Services Australia's $340M program is the most promising leading indicator.
Healthcare at 54.3 (#5) is the most cautiously progressing sector. The Royal Melbourne TGA approval of AI radiology support is a milestone, but system-wide adoption lags.
Utilities at 47.8 (#6) is the only sector yet to cross 50. AGL's grid prediction pilot and Origin's predictive maintenance result are genuine bright spots in an otherwise early-stage adoption story.
Top AI Investments — Q2 2026
$180M
Commonwealth Bank of Australia
CBA commits $180M to AI-driven fraud detection platform expansion, extending real-time decisioning to international transfers and new payment rails.
Q2 2026
$95M
Woolworths Group
Woolworths announces $95M supply chain AI investment, targeting AI-assisted demand forecasting, automated replenishment, and last-mile delivery optimisation.
Q2 2026
$340M
Services Australia
Services Australia 3-year $340M AI processing modernisation program to automate Centrelink, Medicare, and Child Support claims adjudication with human review layers.
Q2 2026
AI Incidents & Governance Watch
Three notable AI incidents or governance actions surfaced in Q2 2026. Incidents are inverse-scored — transparency in disclosure partially credits the organisation.
ASIC inquiry — AI mortgage bias
ANZ faces ASIC investigation into its AI-driven mortgage affordability scoring engine after ACOSS filed a complaint alleging systematic bias against applicants from low-income regional postcodes. Potential remediation order pending.
ACCC investigates AI dynamic pricing
ACCC opens a formal inquiry into Coles's AI-powered personalised pricing system following consumer group complaints that algorithmic price discrimination penalises low-income shoppers. Coles cooperating with inquiry.
APRA model risk remediation
QBE Australia receives APRA supervisory communication requiring remediation of its AI underwriting pricing engine's model risk management documentation by Q4 2026. No financial penalty issued.
Outlook — Q3 2026
OAIC is expected to publish updated AI privacy guidance in Q3 2026, which may materially lift Governance scores across Banking and Healthcare.
The federal government's AI in Government Framework review is due by August 2026 — watch for new mandatory disclosure requirements that could restructure how Government sector is scored.
Retail AI investment is accelerating faster than governance capacity — the Governance gap (44.8 vs 71.3 Adoption) is likely to widen further unless sector-level self-regulatory action is taken before Q3.
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