The “buzz” around the South Australian economy is starting to create separation between local and national business confidence according to the latest South Australian Business Chamber/William Buck Survey of Business Expectations.
The September Quarter survey saw the SA Confidence Index rise 6.6 points to 90.9, while the National Confidence Index climbed 4.0 points to 80.7.
South Australian Business Chamber CEO Andrew Kay said the survey showed early signs of renewed optimism in the local economy.
“We have recovered the ground lost earlier in the year and reached levels in the September quarter that we normally associate with a buoyant Christmas trading period,” said Kay. “While the national confidence is also growing, the gap between how we feel about the SA economy versus the rest of the country is starting to widen.”
Kay said that while sentiment is improving, there is still a way to go. “The score still sits below the baseline, so we are not in positive territory yet,” said Kay. “That’s reflected in the Cost of Doing Business remaining a clear number one concern in the survey, and the Cost of Regulation and Compliance now joining Profitability/Margins as the equal second biggest issue facing business.”
While businesses say they struggle to pass on rising overheads such as energy prices, insurance premiums and compliance costs, more are embracing AI to find efficiencies in the workplace.
A year ago, 41.9% of businesses were not using AI, now just 24.2% are yet to embrace the new technology. Kay said that while an increase in uptake is not surprising, the lack of guardrails remains a concern. “The use of generative AI such as ChatGPT and Co-Pilot continues to grow at pace,” said Kay. “However, only 16.7% of businesses have an AI policy to control its use in the workplace.”
“Given that more than 70% of businesses surveyed believe that AI will be important to their future, there is an urgent need to address the deficit in internal guidelines to protect data and intellectual property.”
Media Contact — Andrew Kay | akay@sabusinesschamber.com.au | 0439 009 590
