Read The Times Australia

Daily Bulletin

Businesses can’t escape the AI revolution – so here’s how to build a culture of safe and responsible use

  • Written by: Nicholas Davis, Industry Professor of Emerging Technology and Co-Director, Human Technology Institute, University of Technology Sydney
Businesses can’t escape the AI revolution – so here’s how to build a culture of safe and responsible use

In November 2023, the estates of two now-deceased policyholders sued the US health insurer, United Healthcare, for deploying what they allege is a flawed artificial intelligence (AI) system to systematically deny patient claims.

The issue – they claim – wasn’t just how the AI was designed. It was that the company allegedly also limited the ability of staff to override the system’s decisions, even if they thought the system was wrong.

They allege the company even went so far as to punish staff who failed to act in accordance with the model’s predictions.

Regardless of the eventual outcome of this case, which remains before the US court system, the claims made in the suit highlight a critical challenge facing organisations.

While artificial intelligence offers tremendous opportunities, its safe and responsible use depends on having the right people, skills and culture to govern it properly.

Read more: Beyond the hype: what workers really think about workplace AI assistants

Getting on the front foot

AI is pervading businesses whether they like it or not. Many Australian organisations are moving quickly on the technology. Far too few are focused on proactively managing its risks.

According to the Australian Responsible AI Index 2024, 78% of surveyed organisations claim their use of AI is in line with the principles of responsible AI.

Yet, only 29% said they had implemented practices to ensure it was.

ChatGPT, Gemini, Microsoft Copilot, Claude, and Perplexity app icons are seen on a smartphone
AI applications range from easily accessible general-use chatbots to highly-specialised software. Tada Images/Shutterstock

Sometimes visible, sometimes not

In some cases, AI is a well-publicised selling point for new products, and organisations are making positive decisions to adopt it.

At the same time, these systems are increasingly hidden from view. They may be used by an upstream supplier, embedded as a subcomponent of a new product, or inserted into an existing product via an automatic software update.

Sometimes, they’re even used by staff on a “shadow” basis – out of sight of management.

Modern city traffic and digital technology concept image
AI is increasingly becoming embedded in all kinds of systems, making it hard to know where and how we rely on it. metamorworks/Shutterstock

The pervasiveness – and often hidden nature – of AI adoption means that organisations can’t treat AI governance as merely a compliance exercise or technical challenge.

Instead, leaders need to focus on building the right internal capability and culture to support safe and responsible AI use across their operations.

What to get right

Research from the University of Technology Sydney’s Human Technology Institute points to three critical elements that organisations must get right.

First, it’s absolutely critical that boards and senior executives have sufficient understanding of AI to provide meaningful oversight.

This doesn’t mean they have to become technical experts. But directors need to have what we call a “minimum viable understanding” of AI. They need to be able to spot the strategic opportunities and risks of the technology, and to ask the right questions of management.

If they don’t have this expertise, they can seek training, recruit new members who have it or establish an AI expert advisory committee.

Clear accountability

Second, organisations need to create clear lines of accountability for AI governance. These should place clear duties on specific people with appropriate levels of authority.

A number of leading companies are already doing this, by nominating a senior executive with explicitly defined responsibilities. This is primarily a governance role, and it requires a unique blend of skills: strong leadership capabilities, some technical literacy and the ability to work across departments.

Third, organisations need to create a governance framework with simple and efficient processes to review their uses of AI, identify risks and find ways to manage them.

Above all, building the right culture

Perhaps most importantly, organisations need to cultivate a critically supportive culture around AI use.

What does that mean? It’s an environment where staff – at all levels – understand both the potential and the risks of AI and feel empowered to raise concerns.

Telstra’s “Responsible AI Policy” is one case study of good practice in a complex corporate environment.

To ensure the board and senior management would have a good view of AI activities and risks, Telstra established an oversight committee dedicated to reviewing high-impact AI systems.

The committee brings together experts and representatives from legal, data, cyber security, privacy, risk and other teams to assess potential risks and make recommendations.

Importantly, the company has also invested in training all staff on AI risks and governance.

Warehouse staff working together using digital tablets to check the stock inventory
Appropriate AI training is necessary at every level of an organisation. Gumbariya/Shutterstock

Bringing everyone along

The cultural element is particularly crucial because of how AI adoption typically unfolds.

Our previous research suggests many Australian workers feel AI is being imposed on them without adequate consultation or training.

This doesn’t just create pushback. It can also mean organisations miss out on important feedback on how their staff actually use AI to create value and solve problems.

Ultimately, our collective success with AI depends not so much on the technology itself, but on the human systems we build around it.

This is important whether you lead an organisation or work for one. So, the next time your colleagues start discussing an opportunity to buy or use AI in a new way, don’t just focus on the technology.

Ask: “What needs to be true about our people, skills and culture to make this succeed?”

Authors: Nicholas Davis, Industry Professor of Emerging Technology and Co-Director, Human Technology Institute, University of Technology Sydney

Read more https://theconversation.com/businesses-cant-escape-the-ai-revolution-so-heres-how-to-build-a-culture-of-safe-and-responsible-use-246024

Business News

Is Your Brand Showing Up in AI Search? Most Melbourne Brands Aren't.

The New Front Door Nobody Told You About Something changed. Quietly. Without a press release. The way buyers find businesses in Australia has been rewired. Not replaced, rewired. Google isn't dead...

Daily Bulletin - avatar Daily Bulletin

How Australian Businesses Can Measure SEO ROI

SEO can feel vague when you are staring at a dashboard full of numbers that do not clearly connect to revenue. The key is to measure the right signals in the right order, then tie them back to outcome...

Daily Bulletin - avatar Daily Bulletin

How Commercial Roller Shutters Improve Site Security Without Slowing Operations

Security upgrades can be frustrating when they make everyday work harder. A door that takes too long to open, creates bottlenecks at shift change, or fails at the worst time can turn “better protectio...

Daily Bulletin - avatar Daily Bulletin

Why a Document Destruction Service Still Matters for Modern Businesses

Businesses generate large volumes of information every day, from staff records and contracts to invoices, reports and customer files. While attention often focuses on how documents are stored, the way...

Daily Bulletin - avatar Daily Bulletin

Bicycle Rack Safety and Space-Smart Storage

Bike storage problems usually show up as small annoyances first: tangled handlebars, scratched frames, and bikes that topple when you pull one out. Over time, those issues become safety risks, especia...

Daily Bulletin - avatar Daily Bulletin

How to Tell if a Childcare Centre Is a Good Fit for Your Child

Choosing childcare can feel like you’re making a huge decision with limited information. Tours are short, centres are often on their best behaviour, and your child might act differently in a new space...

Daily Bulletin - avatar Daily Bulletin

Car Import Timeline: What Usually Happens at Each Stage

Importing a car into Australia can feel confusing because multiple agencies and checkpoints are involved, and the timeline is shaped as much by paperwork quality as it is by shipping speed. The most u...

Daily Bulletin - avatar Daily Bulletin

Portable Toilet Hygiene Standards Explained: Clean vs Sanitised vs Disinfected

In portable toilet servicing, the words clean, sanitised, and disinfected often get used as if they mean the same thing. They don’t. And that difference matters because a unit can look tidy and still ...

Daily Bulletin - avatar Daily Bulletin

Options Available When a Company Faces Financial Distress

Financial distress can develop gradually or arrive suddenly, and when it does, the decisions made in the early stages often determine what options remain available later. Directors who act promptly ...

Daily Bulletin - avatar Daily Bulletin

The Daily Magazine

What Actually Makes a Good Criminal Lawyer in Melbourne

Most people only think about this question once. That is usually too late. Most people charged wi...

Why Working With A Chatswood Tutor Can Improve Academic Performance

Academic expectations continue increasing for students across primary school, high school, and senio...

Is It Worth Getting Solar Panels in Melbourne?

The real question is not whether solar works in Melbourne. It works. The question is what it is co...

How A Diploma Of Project Management Builds Practical Skills For Modern Work Environments

Developing the ability to plan, execute, and deliver outcomes efficiently is a key requirement in to...

How to Choose the Right Football for Every Level

Choosing a football may seem straightforward, but the right option depends on who will be using it a...

What to Ask a Wedding Photographer Before You Book

Booking a wedding photographer can feel deceptively simple: you like the photos, you like the vibe...

Why Stress Relief For Dogs Is Essential For Emotional Balance And Long-Term Wellbeing

Managing emotional health is just as important as physical care when it comes to pets, which is why ...

Australia’s Best Walking Trails and the Shoes You Need to Tackle Them

Australia is not short on spectacular walks. You can follow ocean cliffs in Victoria, cross ancien...

Why Pre-Purchase Building Inspections Are Essential Before Buying a Home in Australia

source Have you ever walked through an open home and started picturing your furniture, family d...