Reality check: Lenovo's enterprise predictions for 2025 under the microscope
Organisations in Australia and New Zealand are accelerating their adoption of artificial intelligence (AI), data centre infrastructure, and sustainable practices while maintaining a strong focus on cybersecurity. This is according to a mid-year review of technology predictions originally made by Kumar Mitra, Managing Director and Regional General Manager, CAP & ANZ, Lenovo Infrastructure Solutions Group, for 2025.
AI adoption and ROI
The latest data reveals that AI investment in Australia and New Zealand (ANZ) has increased fourfold over the year, outpacing the Asia-Pacific average of a 3.3-fold rise. However, despite this surge in spending, 58% of organisations in the region are still in the planning or evaluation stages of AI deployment. The primary barrier to further adoption is the challenge of demonstrating a clear return on investment (ROI). While generative AI accounts for 38% of AI spend in ANZ, most enterprises are opting for a strategic, long-term approach that aims to ensure measurable and sustainable outcomes from their investments.
Cybersecurity focus
The review confirms that cybersecurity has become a board-level topic driven by rising threat levels and stricter regulation. Implementation of new Australian laws, including mandatory reporting for ransomware payments and the establishment of a Cyber Incident Review Board, has re-emphasised the need for robust cyber defences. The ongoing 2023–2030 Cyber Security Strategy underpins cross-sector collaboration and targets increased resilience and faster incident response. Enterprises are responding by investing in layered defences and reinforcing governance to counter increasingly complex, AI-enabled attacks. "With the rise of high-profile data breaches in 2024, cybersecurity will remain a critical area of focus for businesses in Australia. Specifically, the spotlight will be on securing data, after Lenovo's 2024 Smarter Data Management Playbook found that data security was the number one priority among IT and business decision-makers. Increased government regulations, such as the Cyber Security Bill proposed in Australia, are pushing companies to enhance their security measures, while also holding them accountable for losses and damage resulting from security failures. This growing awareness is prompting businesses to invest more heavily in cybersecurity and data protection solutions, implementing stricter processes around accessing and securing data. As the volume of data continues to increase, due to growing demand in services such as artificial intelligence (AI), the challenge lies in maintaining a robust and cost-effective data infrastructure. It is essential that businesses begin building resilient ecosystems before regulations are enforced to avoid rushed implementations that increase the risk of vulnerabilities during transition. Lenovo helps businesses do this by providing a comprehensive range of cyber security services, from Security Assessments through to Managed Detection and Cyber Resiliency as-a-service."
Sustainability drives infrastructure decisions
Sustainability has become central to infrastructure strategy as energy consumption rises due to expanding AI workloads. Industry players are prioritising energy-efficient systems not only for compliance but as a lever for competitiveness and resilience. An example cited is Sharon AI's Supercluster – developed with Lenovo – which aims to be one of the nation's most energy-efficient AI deployments. Organisations are looking beyond compliance, considering the broader performance and competitive advantages associated with sustainable infrastructure.
"As reliance on digital services and artificial intelligence (AI) grows, the energy demands of data centres across the APAC region are rising exponentially. Estimates suggest that AI will add 3 per cent to global electricity demands. In 2025, we will see increased scrutiny on businesses to act in an environmentally sustainable manner, with some markets introducing legislation imposing tighter restrictions on the disclosure of climate risks. For data centres, the challenge will be balancing the need for innovation and scalability with its carbon footprint. Governments and businesses alike will be focusing more on sustainable infrastructure, leveraging new advancements in energy-efficient cooling systems, virtualised server environments and sustainable building materials. For example, Lenovo is taking liquid cooling mainstream with its Neptune Liquid Cooling Ecosystem, enabling up to a 40% reduction in power consumption. We will also see more businesses explore sustainable energy sources, such as wind and solar energy, with 9 out of ten businesses already planning to boost their sustainability-focused IT investments." Hybrid and edge computing trends
There is a continuation of the trend towards hybrid and multi-cloud AI infrastructure across the region. Forty-five percent of organisations in ANZ now favour on-premises or hybrid AI environments, with only 38% remaining reliant solely on public cloud. Edge computing is also experiencing increased uptake in industries such as mining, manufacturing, healthcare and retail, where real-time data processing at the source is essential. One application is Truis's use of Lenovo ThinkEdge servers to deploy in-store AI and analytics, aimed at optimising customer experiences and streamlining operations.
Data centre growth
Expansion in data centre infrastructure is expected to continue rapidly, with Australia already among the top five global data centre hubs by size. Current projections indicate 250 operational data centres with a need for roughly 175 additional facilities by 2030 to keep pace with demand, particularly for AI-driven services. Investment is being driven mainly by hyperscale providers and supported by governmental initiatives to fast-track approvals and establish innovation zones.
"The data centre market in Australia has experienced significant expansion due to the rise of data consumption across the region. Forecasts predict that deployable data centre capacity in Australia will more than double by 2030, from 1,350 megawatts in 2024. A key focus for governments and enterprises will be balancing increasing energy demands and operational complexities with growing expectations for AI infrastructure, especially as the Australian government is aiming to achieve 82% renewable energy in electricity grids by 2030." AI verticalisation and agentic AI
The verticalisation of large language models (LLMs), where they are tailored for specific sectors, is beginning to take hold in the region. More than half of APJ organisations are now fine-tuning and integrating models with their internal data instead of building from scratch, particularly in areas such as IT operations, software development, and cybersecurity. While broader deployment is expected later in the year, the initial adoption signals significant momentum.
Agentic AI, defined as AI agents capable of independent action and decision-making, is moving from pilot projects to early deployment. Interest is strong, with 69% of ANZ executives prioritising agentic AI and 38% already testing solutions. Lenovo reports practical benefits including up to eight times faster content creation and a 50% improvement in customer service efficiency from its Hybrid AI Advantage with NVIDIA partnership.
"Agentic AI, or AI agents, capable of independent action and decision-making, are set to make waves over the next year and drive not just personalisation, but complete individualisation. For the first time, AI is no longer just a generative knowledge base or chat interface. It is both reactive and proactive—a true partner. Gartner estimates that nearly 15% of day-to-day work decisions will be taken autonomously through agentic AI by 2028. AI agents will leverage local LLMs enabling real-time interaction with a user's personal knowledge base without relying on cloud processing. This offers enhanced data privacy, as all interactions remain locally stored on the device, and increased productivity, as the agent helps to automate and simplify a wide range of tasks, from document management, meeting summaries to content generation. We will also see the emergence of personal digital twins, which are clusters of agents that that capture many different aspects of our personalities and act on many different facets of need. For example, a digital twin might comprise a grocery buying agent, a language translation agent, a travel agent, etc. This cluster of agents become a digital twin when all of them work together, in sync with the individual's data and needs." Skills and future trends
The ongoing growth in AI and digital technology continues to place pressure on skillsets, with 45% of Asia-Pacific enterprises reporting difficulty in recruiting AI talent. Investment in upskilling and internal training remains a challenge and an area of focus for organisations aiming to close the gap between ambitions and practical implementation.
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Reality check: Lenovo's enterprise predictions for 2025 under the microscope
Organisations in Australia and New Zealand are accelerating their adoption of artificial intelligence (AI), data centre infrastructure, and sustainable practices while maintaining a strong focus on cybersecurity. This is according to a mid-year review of technology predictions originally made by Kumar Mitra, Managing Director and Regional General Manager, CAP & ANZ, Lenovo Infrastructure Solutions Group, for 2025. AI adoption and ROI The latest data reveals that AI investment in Australia and New Zealand (ANZ) has increased fourfold over the year, outpacing the Asia-Pacific average of a 3.3-fold rise. However, despite this surge in spending, 58% of organisations in the region are still in the planning or evaluation stages of AI deployment. The primary barrier to further adoption is the challenge of demonstrating a clear return on investment (ROI). While generative AI accounts for 38% of AI spend in ANZ, most enterprises are opting for a strategic, long-term approach that aims to ensure measurable and sustainable outcomes from their investments. Cybersecurity focus The review confirms that cybersecurity has become a board-level topic driven by rising threat levels and stricter regulation. Implementation of new Australian laws, including mandatory reporting for ransomware payments and the establishment of a Cyber Incident Review Board, has re-emphasised the need for robust cyber defences. The ongoing 2023–2030 Cyber Security Strategy underpins cross-sector collaboration and targets increased resilience and faster incident response. Enterprises are responding by investing in layered defences and reinforcing governance to counter increasingly complex, AI-enabled attacks. "With the rise of high-profile data breaches in 2024, cybersecurity will remain a critical area of focus for businesses in Australia. Specifically, the spotlight will be on securing data, after Lenovo's 2024 Smarter Data Management Playbook found that data security was the number one priority among IT and business decision-makers. Increased government regulations, such as the Cyber Security Bill proposed in Australia, are pushing companies to enhance their security measures, while also holding them accountable for losses and damage resulting from security failures. This growing awareness is prompting businesses to invest more heavily in cybersecurity and data protection solutions, implementing stricter processes around accessing and securing data. As the volume of data continues to increase, due to growing demand in services such as artificial intelligence (AI), the challenge lies in maintaining a robust and cost-effective data infrastructure. It is essential that businesses begin building resilient ecosystems before regulations are enforced to avoid rushed implementations that increase the risk of vulnerabilities during transition. Lenovo helps businesses do this by providing a comprehensive range of cyber security services, from Security Assessments through to Managed Detection and Cyber Resiliency as-a-service." Sustainability drives infrastructure decisions Sustainability has become central to infrastructure strategy as energy consumption rises due to expanding AI workloads. Industry players are prioritising energy-efficient systems not only for compliance but as a lever for competitiveness and resilience. An example cited is Sharon AI's Supercluster – developed with Lenovo – which aims to be one of the nation's most energy-efficient AI deployments. Organisations are looking beyond compliance, considering the broader performance and competitive advantages associated with sustainable infrastructure. "As reliance on digital services and artificial intelligence (AI) grows, the energy demands of data centres across the APAC region are rising exponentially. Estimates suggest that AI will add 3 per cent to global electricity demands. In 2025, we will see increased scrutiny on businesses to act in an environmentally sustainable manner, with some markets introducing legislation imposing tighter restrictions on the disclosure of climate risks. For data centres, the challenge will be balancing the need for innovation and scalability with its carbon footprint. Governments and businesses alike will be focusing more on sustainable infrastructure, leveraging new advancements in energy-efficient cooling systems, virtualised server environments and sustainable building materials. For example, Lenovo is taking liquid cooling mainstream with its Neptune Liquid Cooling Ecosystem, enabling up to a 40% reduction in power consumption. We will also see more businesses explore sustainable energy sources, such as wind and solar energy, with 9 out of ten businesses already planning to boost their sustainability-focused IT investments." Hybrid and edge computing trends There is a continuation of the trend towards hybrid and multi-cloud AI infrastructure across the region. Forty-five percent of organisations in ANZ now favour on-premises or hybrid AI environments, with only 38% remaining reliant solely on public cloud. Edge computing is also experiencing increased uptake in industries such as mining, manufacturing, healthcare and retail, where real-time data processing at the source is essential. One application is Truis's use of Lenovo ThinkEdge servers to deploy in-store AI and analytics, aimed at optimising customer experiences and streamlining operations. Data centre growth Expansion in data centre infrastructure is expected to continue rapidly, with Australia already among the top five global data centre hubs by size. Current projections indicate 250 operational data centres with a need for roughly 175 additional facilities by 2030 to keep pace with demand, particularly for AI-driven services. Investment is being driven mainly by hyperscale providers and supported by governmental initiatives to fast-track approvals and establish innovation zones. "The data centre market in Australia has experienced significant expansion due to the rise of data consumption across the region. Forecasts predict that deployable data centre capacity in Australia will more than double by 2030, from 1,350 megawatts in 2024. A key focus for governments and enterprises will be balancing increasing energy demands and operational complexities with growing expectations for AI infrastructure, especially as the Australian government is aiming to achieve 82% renewable energy in electricity grids by 2030." AI verticalisation and agentic AI The verticalisation of large language models (LLMs), where they are tailored for specific sectors, is beginning to take hold in the region. More than half of APJ organisations are now fine-tuning and integrating models with their internal data instead of building from scratch, particularly in areas such as IT operations, software development, and cybersecurity. While broader deployment is expected later in the year, the initial adoption signals significant momentum. Agentic AI, defined as AI agents capable of independent action and decision-making, is moving from pilot projects to early deployment. Interest is strong, with 69% of ANZ executives prioritising agentic AI and 38% already testing solutions. Lenovo reports practical benefits including up to eight times faster content creation and a 50% improvement in customer service efficiency from its Hybrid AI Advantage with NVIDIA partnership. "Agentic AI, or AI agents, capable of independent action and decision-making, are set to make waves over the next year and drive not just personalisation, but complete individualisation. For the first time, AI is no longer just a generative knowledge base or chat interface. It is both reactive and proactive—a true partner. Gartner estimates that nearly 15% of day-to-day work decisions will be taken autonomously through agentic AI by 2028. AI agents will leverage local LLMs enabling real-time interaction with a user's personal knowledge base without relying on cloud processing. This offers enhanced data privacy, as all interactions remain locally stored on the device, and increased productivity, as the agent helps to automate and simplify a wide range of tasks, from document management, meeting summaries to content generation. We will also see the emergence of personal digital twins, which are clusters of agents that that capture many different aspects of our personalities and act on many different facets of need. For example, a digital twin might comprise a grocery buying agent, a language translation agent, a travel agent, etc. This cluster of agents become a digital twin when all of them work together, in sync with the individual's data and needs." Skills and future trends The ongoing growth in AI and digital technology continues to place pressure on skillsets, with 45% of Asia-Pacific enterprises reporting difficulty in recruiting AI talent. 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