AI governance in Australia
White paper, 2024
Leadership insights and the voluntary AI safety standard in practice
A message from the Chief Executive of Governance Institute
Today, artificial intelligence (AI) stands at the forefront of innovation, transforming industries and redefining the way in which we live and work. So, I am thrilled to present this thought leadership report, which delves into the profound impact of AI and its potential to shape our future.
This report is a culmination of three specialist roundtables with key insights from industry experts, and real-world case studies that highlight the transformative power of AI. It explores the latest trends, challenges, and opportunities in AI, providing a comprehensive overview of how businesses can harness this technology to drive growth, enhance efficiency and create value.
It also examines the critical role of governance in the ethical and responsible deployment of AI. Good governance is essential to ensure that AI technologies are developed and used in ways that are transparent, fair, and aligned with societal values. This project underscores our commitment to not only advancing AI, but doing so in a manner that upholds the highest standards of integrity and accountability.
We are proud to share our knowledge and expertise through this report, aiming to inspire and guide organisations on their AI journey.
I would like to extend my gratitude to the talented team of researchers, analysts, and contributors who have made this report possible. Their hard work and dedication have resulted in a valuable resource that we hope will serve as a catalyst for meaningful discussions and strategic initiatives in the AI domain.
I would also like to sincerely thank our sponsored partners, PKF, Clayton Utz, and Diligent for their support in bringing this report to life and for their continued involvement with the work of the Governance Institute of Australia.
As you explore the insights and findings within this report, I encourage you to think boldly about the future of AI and its potential to drive positive change. Together, we can harness the power of AI to create a smarter, more connected, and more prosperous world.
Thank you for your interest in our AI thought leadership report. We look forward to continuing this journey of innovation and discovery with you.
Megan Motto FGIA FCG FAICD
Chief Executive of Governance Institute of Australia Ltd and of the Australian Division of The Chartered Governance Institute.
Executive summary
In today’s rapidly evolving technological landscape, Australian business leaders face a unique challenge and opportunity: the adoption of Artificial Intelligence (AI). Despite AI’s transformative potential, confidence and adoption, rates among Australian businesses lag behind those in comparable countries. It is this very issue that we explore in this report by surfacing leadership insights gathered from roundtables, and aligning best practice from the recently released Voluntary AI Safety Standard.
Australian businesses are not fully leveraging AI, leading to missed opportunities for innovation and efficiency. Additionally, AI presents significant ethical dilemmas that require thoughtful leadership and robust frameworks. This document offers strategic recommendations and practical guidance to help business leaders navigate AI adoption. We present a tailored approach that considers the specific needs and challenges of Australian businesses, from SMEs to larger firms.
Data-driven insights: We provide up-to-date statistics and comparative analysis to highlight the current state of AI adoption in Australia.
Ethical considerations: The report delves into the ethical implications of AI, offering approaches to address these challenges responsibly.
Actionable recommendations: Clear, actionable steps from the latest frameworks are outlined to help business leaders implement AI effectively and ethically.
This report is designed for organisational and business leaders across various sectors, including SMEs and larger enterprises. It aims to equip them with the knowledge and tools needed to lead their organisations through the AI transformation.
This report complements additional guidance published by the Australian Government, in particular, the Voluntary AI Safety Standard.
Understanding and adopting AI is crucial for staying competitive in today’s market. Through this report, business leaders will gain valuable insights and practical strategies to harness the power of AI safely and responsibly, ensuring their organisations remain at the forefront of innovation.
Introduction
Artificial intelligence (AI) has emerged as a transformative force across various sectors. It is driving innovation and efficiency at an unprecedented scale. However, the rapid advancement (such as General Purpose AI) and integration of AI technologies into our daily lives present significant challenges and opportunities that demand careful examination.
This is also underscored by key policy discussions, such as the US Executive Order on the Safe, Secure, and Trustworthy Development and Use of Artificial Intelligence, the Bletchley Declaration, and the European Union (EU) AI Act – the first of its kind – reflecting a global consensus on this critical issue.
Understanding AI in the Australian context
Approaching AI safety and responsible AI (RAI) necessitates joint efforts from multidisciplinary communities such as AI, software engineering (SE) and governance. To better understand Australia’s stance on RAI, we hosted 3 roundtable discussions with panelists from different fields
These session topics covered AI ethics and governance, AI risk and opportunity, and AI as an enabler.
Each session explored crucial aspects of AI development and deployment, providing a holistic understanding of the implications, and the potential and responsibilities associated with AI technologies.
The findings and recommendations from those discussions are presented across the three core topics in this white paper.
AI ethics and governance
Here, we explore the fundamental principles and frameworks needed to ensure that AI systems are developed and deployed ethically and responsibly.
We address the moral, legal and societal implications of AI, emphasising the importance of AI ethics principles, their implementation and operationalisation, and governance for AI.
AI risks and opportunities
We examine the dual facets of AI. It highlights the potential risks, including biases, security concerns and unintended consequences, while also exploring the immense opportunities AI presents for innovation, problem-solving and enhancing human capabilities.
AI as an enabler
We investigate how AI can be a powerful tool for enabling progress across various domains. We focused on the transformative impact of AI on industries, the economy and society at large, showcasing the role of AI in driving sustainable development and addressing complex global challenges.
Better practice: a tailored approach
Successfully integrating AI into an organisation requires a comprehensive strategy encompassing proactive risk management, ethical governance, continuous learning and culture change. There is no one size-fits-all approach.
Our best practice recommendations aim to guide organisations in effectively adopting and managing AI technologies, while ensuring alignment with broader organisational goals and ethical standards. They are outlined in a simple checklist.
The ten guardrails at a glance
Guardrail 1
Establish, implement and publish an accountability process including governance, internal capability and a strategy for regulatory compliance.
Guardrail 2
Establish and implement a risk management process to identify and mitigate risks.
Guardrail 3
Protect AI systems, and implement data governance measures to manage data quality and provenance.
Guardrail 4
Test AI models and systems to evaluate model performance and monitor the system once deployed.
Guardrail 5
Enable human control or intervention in an AI system to achieve meaningful human oversight across the life cycle.
Guardrail 6
Inform end-users regarding AI-enabled decisions, interactions with AI and AI-generated content.
Guardrail 7
Establish processes for people impacted by AI systems to challenge use or outcomes.
Guardrail 8
Be transparent with other organisations across the AI supply chain about data, models and systems to help them effectively address risks.
Guardrail 9
Keep and maintain records to allow third parties to assess compliance with guardrails.
Guardrail 10
Engage your stakeholders and evaluate their needs and circumstances, with a focus on safety, diversity, inclusion and fairness.
Acknowledgements
This important thought leadership project is proudly sponsored by PKF, Clayton Utz, Diligent, and the National Artificial Intelligence Centre.
We also acknowledge the important contributions of all round table participants, who include:
