Amplified intelligence: Smart business governance in the AI-age

AI is here, and it's not just a buzzword – it's transforming industries and redefining how we do business. But with this power comes the need for smart, ethical governance. My team joined Australian directors and business leaders recently at the AICD Governance Summit to discuss exactly that – the opportunity for Australian businesses to embrace AI responsibly and thoughtfully. I also note the acknowledgement by Treasurer Jim Chalmers following the recent election, speaking about the critical role of technology like AI in fuelling Australian business growth. Spoiler: It's not just about tech. Good AI governance is found in the leaders who build AI-powered businesses responsibly, with foresight for workforce transformation and planning for digital resilience.

Australia's growing fluency in AI is not only transforming industries but also positioning Australia as a key player in the global AI landscape. Businesses large and small are evaluating and deploying the technology to drive innovation and productivity. As CB Insights' $1B+ Market Map also shows, nearly 1 in 2 unicorns is an AI company and Australia is home to eight of the world's 1,249 unicorns where these teams created AI-powered robotics, coding agents, and generative creative engines. We are home to a community of strong AI capability and credibility on the global stage.  

But more broadly Australian business leaders and their businesses have room to grow their trust and fluency in AI. Recent news reports show that just 30 per cent of Australians believe the benefits of using artificial intelligence outweigh the risks, the lowest ranking of any country in a global survey of 47 nations.

Globally, there are lessons we can learn from the applications of AI. Japan has pioneered the use of humanoid robots and AI in manufacturing, driven by its aging population and strong industrial base. China leads in generative AI patents and has seen major tech companies like Alibaba, Tencent, and Baidu develop advanced AI models. In Singapore, AI is being applied to strengthen career support for jobseekers with Virtual Career Coach tools accessing advice based on career goals, interests and existing skills to direct them to relevant roles, skills development programs and career planning. AI initiatives like these show AI's potential for economic, industrial and social benefit in incredibly impactful ways. 

AI adoption should be driven by a culture of responsible ambition. At the AI Action Summit in Paris in February, Australia was one of 60 countries pledging to regulate the fast-emerging world of AI to "ensure AI is open, inclusive, transparent, ethical, safe, secure, and trustworthy."

Boards and executives must encourage innovation and maintain a strong focus on governance, fostering a culture where ethical AI practices are the norm: A trusted digital core to an organisation. Responsible ambition means pushing the boundaries of what AI can achieve, while safeguarding against potential risks.

Aligning AI initiatives with the core purpose and mission of an organisation is critical. And asking key questions about how AI can enhance capability to deliver value is the most important first step. A piecemeal approach to AI can cause fragmented efforts and poor results, while a comprehensive strategy ensures coherence and strengthens digital resilience.

AI will also inevitably transform the workforce. Businesses must be proactive in managing this change, upskilling employees, and fostering a culture of continuous learning; ensuring AI complements rather than replaces human capabilities. Ethical considerations such as data privacy, bias mitigation, and accountability must also be at the forefront of AI initiatives and training, ensuring that employees are equipped to optimise AI's value thoughtfully and ethically.

The AI revolution presents both opportunities and challenges for Australian businesses. As we stand on the brink of this transformative era, join me in the call for thoughtful, ethical governance of AI to be the standard. Let's unlock the opportunity AI presents for boards, business leaders and society at large, ensuring we do so ethically, safely and securely.