Cyber threats remain a major concern for Australian businesses as they pursue digital transformation and AI to boost productivity, improve their performance and mitigate global economic uncertainties, according to a new survey of Maddocks clients. 

The Maddocks Digital Transformation 2025 Legal Trends Benchmark report, launched today, provides a snapshot of clients’ technology priorities for the remainder of the year, and how they are managing their data, privacy obligations, cyber security, and adoption of AI.    

The survey reveals that while almost all respondents have implemented AI tools, 41% lack controls for AI. Ethical concerns about artificial intelligence were also highlighted with 72% worried about ethical issues of the new technology, and more than 66% shared they are concerned about regulatory compliance.  

Overall, cyber security ranked as the top priority for technology projects this year, with 36% of respondents stating it their highest concern. Other key findings include: 

• 54% of respondents are not prepared for the Australia’s privacy reforms
• 56% plan to undertake major technology procurements or projects this year
• 57% are very concerned about cyber threats to their organisation
• 53% are not prepared for the recently introduced Cyber Security Act
• 51% of respondents are planning to increase technology spending this financial year compared to the last year.

Survey respondents included general counsel, chief executives, founders and managers in risk and IT departments from a range of Maddocks clients in finance, healthcare, education, infrastructure & energy, manufacturing and professional services and food & beverage. 

The report also reveals notable gaps in data and privacy governance. While almost 90% of survey respondents said they have controls in place for their data, more than a third admitted they lack frameworks for data and privacy governance, with assigned roles and responsibilities. Additionally, 33% said they do not have good oversight of where their data is stored.

Technology disputes also remain a central issue for business as they pursue digital transformation initiatives, with nearly 70% of respondents worried about technology-related disputes or litigation. More than 20% had experienced reputational damage linked to technology platforms within the past 12 months arising from technology disputes. 

Commenting on the research, Maddocks Technology Sector Leader and Partner, Brendan Tomlinson, said: “Digital transformation is crucial for Australian businesses and government agencies wanting to stay competitive and resilient in a rapidly evolving global landscape. And more than ever, our laws and regulations play a crucial role in ensuring that transformation initiatives comply with privacy, cybersecurity, and data protection standards. 

“One of the key themes from our research is the prioritisation of privacy and data security. Cyber security spend has become a top priority for both technology and legal teams as the increased risk of threats and recent legislative changes make it apparent that privacy and cyber security is no longer just a problem for IT departments.

As Boards become increasingly aware of their responsibilities in relation to safeguarding stakeholder data and the responsible use of AI, technology and legal teams are under greater pressure to mitigate risks in an ever evolving data landscape."

Between November 2024 and January 2025, Maddocks conducted a detailed survey, asking a broad cross-section of its client base to answer legal and non-legal based questions relating to their digital transformation priorities for 2025. We complimented this quantitative data with in-depth interviews with clients and leaders in the technology industry. Total number of survey respondents: 100.