INTELLIGENT TECHNOLOGY: DIGITAL TRANSFORMATION
AI, hybrid work and ESG reshape Australian workplaces
Australian enterprises are redefining their digital workplaces by combining AI, hybrid work and sustainability strategies to balance innovation with social responsibility.
Australian enterprises are reimagining their digital workplaces through the adoption of generative AI( GenAI), hybrid work models and sustainability-focused innovation, according to new research by Information Services Group( ISG), a global AI-centered technology research and advisory firm.
The 2025 ISG Provider Lens Future of Work Services report finds that Australian organizations are advancing their Digital Transformation through AI automation, employee experience analytics and compliance with environmental, social and governance( ESG) goals. Many are aligning with national initiatives promoting inclusivity, sustainability and workforce decentralization.
“ Australia has moved beyond global imitation to establish its own digital workplace identity,” said Jason McAuliffe, director and APAC Workplace and Experience lead, ISG.“ Local enterprises are incorporating AI ethics, experience design and ESG outcomes into their core technology strategies to achieve both innovation and social responsibility.”
Hybrid work in Australia has matured into a structured framework that balances flexibility with accountability. More than 80 percent of enterprises have adopted hybrid work models, supported by IoT-enabled smart offices, digital twins and persona-based services. Regional delivery hubs are emerging to extend productivity across both urban and rural workforces.
Experience management is becoming central to workplace transformation as enterprises focus on employee engagement and retention. Organizations are shifting from service-level agreements to experience-level agreements( XLAs) that connect IT performance with satisfaction and business outcomes. Using analytics and omnichannel support tools, companies are creating adaptive service environments shaped by employee feedback.
GenAI has progressed from pilot projects to core enterprise infrastructure, influencing workflow automation, collaboration and analytics. Many organizations are deploying AI copilots and agentic systems for decision support and knowledge management while maintaining strong governance and transparency. National programs such as AI academies and regulatory frameworks are supporting responsible AI adoption.
“ Trends in AI, hybrid work and ESG are defining Australian work strategies and workplace services for the future,” said Bruce Guptill, lead author of the report.“ Enterprises are no longer adopting technology for efficiency alone. They are building intelligent, ethical and sustainable systems that can provide long-term competitiveness.”
The report also highlights additional trends shaping Digital Transformation, including GreenOps platforms for energy optimisation and AI-enabled learning tools that foster equity and lifelong development.
The 2025 ISG Provider Lens Future of Work( Workplace Services) report evaluates 37 providers across six quadrants, naming Capgemini, HCLTech, Infosys, TCS and Wipro as Leaders in all categories. Fujitsu and NTT DATA lead in five quadrants each, while Accenture, Unisys, Datacom, DXC Technology and Kyndryl feature strongly across others. Accenture, Cognizant, Datacom, KPMG, LTIMindtree, PwC, Tech Mahindra and Unisys are also recognised as Rising Stars for their‘ promising portfolios’ and‘ high future potential’.
In customer experience, Microland has been named ISG’ s global CX Star Performer for 2025, achieving the highest satisfaction scores in ISG’ s Voice of the Customer survey, part of the ISG Star of Excellence program recognising excellence in technology and business services. p
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