Voice of VET Report 2025: VET providers struggle with regulation, embrace AI

Wednesday, 26 March 2025 – Australian vocational education and training (VET) providers are struggling to keep pace with increasingly complex regulatory requirements, a new report has found. 

According to ReadyTech’s Voice of VET Report 2025, the regulatory burden placed on VET providers has been exacerbated by the introduction of new Registered Training Organisation (RTO) Standards, which are set to come into full force on 1 July 2025. 

ReadyTech’s General Manager of Education, Trevor Fairweather, said red tape is making it hard for VET providers to balance quality training delivery with resourcing and compliance requirements. 

“This year’s survey showed a clear shift in priorities, with compliance surging to the forefront. It’s concerning 34% of respondents said meeting their regulatory obligations under the new RTO Standards would be their biggest challenge,” Mr Fairweather said. 

“Compliance is expensive and, while VET providers are committed to meeting regulatory obligations, their key focus has to be on delivering high-quality educational outcomes. They are trying to achieve this against a backdrop of decreased funding, increasing costs and less revenue.” 

 While compliance presented a challenge, half of those surveyed believe artificial intelligence (AI) adoption presented a significant opportunity for the sector. In particular, they believe AI would impact course content, student experience and staff productivity. 

“The potential of AI is evident, whether in course design, assessment, or compliance automation. In coming years, AI will only become more central to training delivery, so ensuring providers have the tools, knowledge, and confidence to embrace it is critical,” Mr Fairweather said. 

“In this regard, the biggest hurdle for VET providers is knowing where to start when it comes to implementing AI as part of their digital transformation. Central to this is developing an AI strategy but, as the survey shows, only 21% have developed an AI strategy or plan. This is clearly an area where more work needs to be done.”  

ReadyTech’s Voice of VET 2025 report shares the perspectives of senior executives of RTOs across all Australian states and territories to analyse key business indicators and views across the RTO market.

For more information and to read the full report, visit readytech.io/VoiceOfVET.

 

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For more information, please contact:

Natalie Miller
Head of Marketing, CX & Corporate Communications
p. +61 422 436 787
e. natalie.miller@readytech.io

 

About ReadyTech 

ReadyTech is a leading provider of mission-critical SaaS for the education, workforce management, government and justice sectors. Bringing together the best in people management systems from students and apprentices to payroll, employment services, and community engagement, ReadyTech creates awesome technology that helps their customers navigate complexity, while also delivering meaningful outcomes. To learn more about ReadyTech’s people-centric approach to technology, please visit readytech.io.