Artificial Intelligence (AI) is already transforming industries, driving efficiency, and opening doors to innovation. However, while its potential is immense, many organisations are at different stages of readiness to adopt and maximise AI. This readiness, commonly called AI maturity, is critical for businesses wanting to realise AI’s maximum benefits.

AI maturity isn’t just about IT having access to bleeding-edge technologies or a marketing department having a new shiny thing. It’s about having the culture, talent, infrastructure, and governance to ensure AI’s successful integration. MIT Sloan School’s AI Maturity Model provides an excellent framework to understand this progression, breaking it into four stages organisations can work through to become AI leaders.

Understanding your organisation’s current position in this model is the first step towards improvement. Here’s a closer look at each stage and how you can accelerate your progress.

AI Maturity Stages

1. Experiment and Prepare

This is where businesses first engage with AI. It’s a learning phase focused on education and laying solid foundations for welcoming AI into the workplace.

Attributes
  • Educating teams on the basics of AI and its applications
  • Establishing policies around the acceptable use of AI technologies
  • Working on making organisational data accessible and usable for AI
  • Identifying tasks that require human intervention
Focus Area
  • Exploration and understanding.

If your organisation is at this stage (like 28% of firms globally), your priority should be fostering awareness of AI’s potential and creating an experimental mindset within your workforce.

2. Build Pilots and Capabilities

At this level, businesses are venturing into practical AI applications. They pilot AI initiatives, create use cases, and embed early efficiencies across teams.

Attributes
  • Simplifying repetitive processes through automation
  • Enabling better data-sharing structures using APIs
  • Adopting collaborative management practices to encourage team alignment
  • Introducing tools like large language models (LLMs) and generative AI to start augmenting decision-making
Focus Area
  • Experimenting with business cases and pilot programs.

More than one-third (34%) of companies are here. The key is turning ideas into action and building momentum toward more extensive AI applications.

3. Develop AI Ways of Working

This stage represents a significant leap forward. Organisations now treat AI as an integral part of their operations rather than an isolated experiment.

Attributes
  • Scaling automation technologies to include complex and cross-departmental tasks
  • Creating reusable AI tools that streamline processes
  • Leveraging custom AI models for better personalisation and prediction
  • Experimenting with advanced concepts like autonomous agents for unique business needs
Focus Area
  • Operational scalability and streamlined AI workflows.

About 31% of organisations fall into this category, positioning themselves to benefit from AI not only in operations but as part of broader strategic objectives.

4. Become AI Future-Ready

At the final stage, AI is no longer a tool; it’s a core component of business strategy. These organisations push the boundaries of AI, driving innovation and maintaining a competitive edge.

Attributes
  • Embedding AI into decision-making at every tier
  • Launching AI-powered services and products
  • Combining AI technologies, from generative to robotic, for comprehensive solutions
  • Ensuring compliance with data security and ethical guidelines
Focus Area
  • Continuous innovation and creating new revenue opportunities

Only 7% of businesses have achieved this level, but they enjoy far-reaching benefits, including sustained innovation, stronger market positions, and agile decision-making.

Why Advancing AI Maturity Matters

Moving up the AI maturity ladder brings measurable benefits. Businesses that step up from just experimenting with AI to fully embedding it into their core operations see gains in efficiency, revenue, and customer satisfaction.

  • From experimentation to pilots: AI automates routine tasks, allowing teams to focus on strategic efforts.
  • From pilots to scaling: Insights derived from advanced AI models help improve product offerings and customer experiences.
  • From scaling to future-ready: Businesses diversify revenue streams, operating at the forefront of technological advancements.

To sum it up, AI maturity opens the door to smarter, more profitable, and innovative business methods.

Steps to Advance on the AI Maturity Scale

Organisations need deliberate, thoughtful action to progress through the AI maturity stages. Here’s a step-by-step guide tailored to Australian businesses navigating this transformational path.

1. Assess Your Current Position
Start by evaluating your organisation’s capabilities across cultural openness, infrastructure readiness, talent availability, and governance frameworks.

2. Establish Robust AI Policies
AI policy creation is a vital step in fostering trust and compliance. Policies should outline acceptable uses of AI, ensure adherence to ethical standards, and offer guidelines for transparency across business units. A strong policy framework reassures stakeholders and sets clear expectations.

3. Develop a Scalable Strategy
Based on your assessment, prioritise areas where growth will have the most significant impact. Whether it’s improving technical capabilities, implementing training programs, or piloting new AI projects, define clear, scalable goals.

4. Implement Incremental Changes
Begin rolling out identified improvements step by step. Small, focused successes create a positive ripple effect that boosts confidence throughout the organisation.

5. Evaluate and Optimise
Track the progress of your AI initiatives using measurable KPIs, such as operational efficiency, customer satisfaction, and cost reductions. Regular reviews not only help maintain momentum but also uncover untapped potential.

My Tips

  • You can use a structured checklist to identify gaps in your business processes that AI could improve.
  • This is not an IT or Marketing-led program; it requires buy-in across the organisation and support from the C-suite.
  • Collaborate with legal, technical, and management teams to develop comprehensive AI use policies.
  • Focus on initiatives that show early wins to secure executive and team buy-in.
  • Fix entire workflows, don’t focus on silos. One department at high maturity will cause bottlenecks for those at lower levels.
  • Implement changes incrementally rather than aiming for sweeping transformations overnight.
  • Schedule quarterly evaluations to align your initiatives with business goals and emerging AI trends.

Now Is the Time to Act

AI is shaping the future, and businesses that move now will be setting the standards tomorrow. Understanding your AI maturity is the gateway to transformation, whether your goal is more substantial operational efficiency, better customer insights, or significant innovation.

Where does your business stand today? You can start by assessing your current stage and drafting a roadmap for advancement. By taking action now, you can position your organisation for long-term success, no matter how fast the AI landscape evolves.