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  5. arrow_forward_ios Harnessing companies' people, skills and culture for effective AI use

Harnessing companies' people, skills and culture for effective AI use

2 December 2024

The latest AI Governance Snapshot from HTI, out today, provides practical advice for organisations on how to strategically invest in their people, skills, and culture to ensure effective AI governance.

HTI's AI Governance Snapshot 4 - People, Skills and Culture for Effective AI Governance

As AI adoption accelerates, Australian organisations are using AI both intentionally to enhance operations, and unintentionally—where AI is embedded into products or staff are using AI on a “shadow” basis without management knowledge or approval.  

Despite 78% of Australian organisations claiming their AI use aligns with responsible practices, only 29% have implemented them. This suggests pressing need for action, and the Snapshot sets out some practical strategies to help close that gap.  

HTI’s Gaby Carney and Llewellyn Spink have held a series of AI governance workshops with senior executives and directors between July and November 2024. The workshops provided practical insights into the challenges being faced by Australian organisations, and a diversity of views as to ways to address them. 

HTI's AI Governance Snapshot 4 - People, Skills and Culture for Effective AI Governance, which has been published today, has drawn on insights from these discussions.  

HTI’s key guidance includes: 

  • Board members will need to have enough understanding of AI technology to be able to identify the strategic opportunities and risks for the organisation. The board can invest in board training, recruit new members with these skills, and/or engage expert advisors 

  • Management should nominate a dedicated lead AI executive to oversee AI governance across the organisation  

  • Organisations should have an AI governance function with a diversity of skills, whether it is a standalone team or part of the mainstream governance processes, and 

  • Staff are an important stakeholder in any AI governance framework and should be actively and regularly engaged regarding AI systems.  

In addition to formal governance processes, organisations should be taking action to support a culture of safe and responsible AI use.  

Woman with glasses, blonde hair, wearing pink jacket

Gaby Carney, HTI Fellow and lead author of the Snapshot, said: 

“Safe and responsible use of AI will require more than just formal governance processes; it’s about building an ecosystem where the people, their skills, and the organisation’s culture all drive safe and responsible adoption.” 

This snapshot examines the people, skills and culture element of HTI’s Essential Elements of AI Corporate Governance. Earlier this year, HTI partnered with the Australian Institute of Company Directors to produce a suite of resources on AI governance for directors, including A Director’s Guide to AI Governance, which explores the key questions and steps that directors and executives should focus on when addressing these eight elements.  

read people, skills and culture for effective ai governance report

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