Microsoft Australia & New Zealand President Jane Livesey highlights that AI is already transforming how Australians work, learn, and operate businesses. She emphasizes that organizations acting quickly and responsibly will shape the country’s next phase of economic growth, as AI moves from a future concept to a present-day driver of productivity and reinvention.
A new EY-Parthenon report commissioned by Microsoft shows the company generated a total economic impact of A$36 billion in Australia during FY2025. This includes A$11 billion from Microsoft’s direct operations, supporting around 33,000 jobs, and A$25 billion contributed through its partner and customer ecosystem, which spans more than 10,000 local companies and 3.6 million users. The report also estimates up to A$22 billion in productivity gains enabled by tools like Azure AI, Microsoft 365 Copilot, and Teams, which significantly reduce time spent on routine work.
AI adoption across Australia is accelerating rapidly, with the country ranking among Microsoft’s leading markets for Microsoft 365 Copilot usage. Seventeen of the ASX Top 20 companies, including all major banks, and 57 government agencies have already adopted the tool. Early deployments show strong expansion, with usage growing over 560 percent among initial customers, indicating a shift from productivity improvement toward full business transformation and AI-driven reinvention.
Major organisations such as Westpac and Telstra demonstrate how AI is reshaping large-scale operations. Westpac has deployed Copilot across 35,000 employees with clear outcome-based governance, while Telstra’s rollout to 21,000 employees has already delivered significant time savings and productivity improvements. These examples highlight a broader trend of enterprises redesigning workflows and integrating AI agents alongside human teams.
Microsoft is also supporting small and medium-sized businesses in adopting AI and cloud technologies to scale rapidly and compete effectively. Companies like Arinco have expanded significantly in both revenue and workforce, while Blue Zebra Insurance has used AI to grow from zero to over 300,000 customers with a lean team, showing how technology enables high growth with fewer resources.
The company’s commitment in the region extends to building local technology infrastructure and talent. Microsoft operates a nearly 1,000-person engineering hub in Australia and New Zealand, along with a new Innovation Hub in Sydney, enabling local development of cloud, AI, and security solutions. These investments strengthen collaboration with Australian companies and contribute to the national tech ecosystem.
Microsoft has also expanded its cloud infrastructure in Australia with a A$5 billion investment, increasing datacentres from 20 to 29 across major cities. This enhances digital resilience, supports data sovereignty, and ensures that Australian organisations can access secure and scalable AI capabilities locally while benefiting from global innovation.
Livesey stresses that inclusive and responsible AI adoption is essential for long-term success. Initiatives such as large-scale digital skills training, partnerships with trade unions, and a five-year agreement with the Australian government aim to ensure AI benefits are widely shared across society while maintaining strong safety and governance standards.
She concludes that Australia is at a critical turning point, where AI leadership will depend on decisive action, strong partnerships, and investment in skills and infrastructure. With the right approach, Australia has the opportunity not just to adapt to the AI era but to lead it, driving sustainable economic growth, resilience, and broad-based opportunity.
