The next digital divide: Are you among the AI leaders or laggards?

Two-thirds of leaders feel their tech hinders AI adoption. The digital divide is widening—are you leading or lagging in AI readiness?

In brief

• 95% of organisations are increasing AI investments, but many leaders recognise that fragmented tech infrastructure hampers adoption.
• Senior executives emphasize the need for better data infrastructure, while boards often overlook the impact of legacy systems on AI speed.
• To thrive, companies must prioritise strategic governance, invest in employee training, and form partnerships that enhance their AI capabilities.

Two-thirds of senior business leaders admit their technology is actively holding them back from adopting AI. In 2025, as businesses channel billions into AI, one question keeps leaders up at night: Can my technology platforms keep up?

The latest EY AI Pulse Survey of 500 global companies reveals 95% of organisations are ramping up their AI investments in 2025.

But here’s the kicker: those closer to the tech see the cracks more clearly. Nearly nine in 10 senior executives believe better data infrastructure would accelerate their company’s AI adoption, compared with 78% of their C-suite superiors.

This disconnect reflects what EY teams observe across large, complex organisations: fragmented platforms, sprawling legacy systems and boards not fully apprised of how this reality will hamper their speed of AI adoption.

Are your platforms keeping pace?

Each year, we bring together some of Australia’s top board directors for the EY Technology Governance Program. And this year, we’ve noticed a new digital divide is emerging.

One common characteristic we see with many of our clients is a technology landscape made up of a combination of systems or applications. Some of these could be categorised as legacy systems holding them back. Others might be described as modern evergreen platforms that are moving forward with the business.

While it may be tempting to think this makes it easy to patch problems with quick fixes or overlay solutions, this merely masks deeper structural issues.

Think of your platforms as the road AI runs on. Poorly governed platforms are like driving a car with faulty brakes while obsessing over the bald tyres. Ignoring the underlying issue will only slow you down or, worse, take you out of the race entirely.

Redesigning your roadmap

The rapidly changing world of AI demands new solutions, datasets and capabilities that few companies have within their own four walls. How do boards respond? The EY AI Pulse Survey sheds light on a quick pivot.

Six months ago, more than half (51%) of respondents were focused on acquisitions. Now, they are embracing off-the-shelf solutions (60%), building bespoke systems with vendors (57%) or forging strategic alliances (54%).

The takeaway? Don’t go it alone. Smaller, niche vendors often lack the resources to keep pace with AI innovation. Choose partners who can deliver at scale.

Put humans@center

AI adoption also demands alignment between tech and business needs. More than half (53%) of senior leaders say their employees are feeling overwhelmed or exhausted by the constant influx of AI information and developments, and almost two-thirds (65%) find it hard to keep employees motivated.

The first step is to assess how people feel about the tools you’re implementing. What do people want? Deploying tools that fail to meet customer needs or that employees are reluctant to use doesn’t make sense.

We also see boards underestimate the significant investment of time required to upskill the workforce. AI is not plug-and-play. It requires a mindset and cultural shift, ongoing training and a determination to prioritise humans@center of every decision.

 The views expressed in this article are the views of the author, not Ernst & Young. This article provides general information, does not constitute advice and should not be relied on as such. Professional advice should be sought prior to any action being taken in reliance on any of the information. Liability limited by a scheme approved under Professional Standards Legislation.