What is AI and where is it being used?

The report defines AI and its broader applications but also recognises that the potential for AI is not fully utilised in Australia yet, with the exception of the finance sector.

Harms, risks, and perceptions of AI systems

The report identifies several potential harms, risks, and public perceptions of AI systems, including common harm to individuals, company risks, societal risks, and governance implications of generative AI systems. The report suggests effective governance systems that can be implemented to address these issues.

How are organisations currently governing AI systems?

The report finds that few Australian organisations have implemented systematic and structured forms of governance around AI systems. The report concludes that organisation leaders must think broadly and strategically when considering how to implement effective AI governance in their organisation.

Legal obligations of Australian organisations using AI

The report identifies existing laws, including corporate leaders’ duties and legal obligations towards AI use. Directors and officers must exercise their duties in good faith, in the best interests of the corporation, and for a proper purpose.

International standards and norms related to AI

The report describes the AI-related norms and standards that are applicable in Australia. Standards are not perfect and may under-represent input from civil society groups, marginalised communities, non-Western perspectives and smaller organisations. The report suggests the adoption of standards and measures to conform to them.

Actions for corporate leaders to foster effective AI governance

The report identifies actions that corporate leaders have to take to enhance AI governance, including investing in strategic AI expertise and creating a comprehensive AI strategy. The report also suggests implementing governance systems, monitoring compliance, supporting human-centered culture surrounding AI’s use, and participating in the development and implementation of AI standards and norms.

In conclusion, the management of AI risk could benefit Australian organisations. Effective governance, strategy, and capacity development are vital for companies to maximise the benefits of AI systems, ensure AI systems are fair, accountable, transparent and trustworthy. Companies must match their investment in AI technology with their governance system’s corresponding transformation. Investing efforts on AI governance may prepare Australian organisations for the AI “Age of Automation” creating sustainable and ethical long-term strategies.