AI Leadership Summit insights

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Insights from the CEDA AI Leadership Summit

KPMG was thrilled to be a major partner of this year’s CEDA AI Leadership Summit. It was a fantastic opportunity for thought leaders, influential executives and trailblazing organisations to come together and share their wisdom on shaping Australia’s responsible AI future.

The discussions highlighted the path to long-term success in the new AI era, with a strong focus on working collectively, pursuing innovation hand-in-hand with accountability, and considering diverse perspectives. KPMG attendees including Jessica Wyndham, Ed Hewings, Nicola Stone and Kristy Zwickert have provided their reflections and insights on the key themes that emerged from the event:

How leadership needs to change
Adopting responsible AI
People empowerment
Business value acceleration.

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Summary

The 2024 CEDA AI Leadership Summit focused on shaping Australia's responsible AI future.
Key themes included collective action, innovation, responsibility and diverse perspectives.
Staying competitive today, involves embracing AI quickly and understanding its impact.
Implementing responsible AI practices is essential for building trust.
Empowering the workforce through a positive AI environment will help employees thrive.
Leaders should focus on strategic drivers for AI to better understand its business value.

AI for business leaders: there’s no time to lose

AI has come a long way since MIT’s Joseph Weizenbaum created the first chatbot in 1966. But recently, the pace of change has quickened to the point where, in 2022 ChatGPT was the fastest software in history to hit 100 million users.

Dr Stela Solar, Director of the National AI Centre, described in her opening remarks how Australia is leading the world in the personal adoption of AI, yet our business adoption lags. There are plenty of gains to be had if organisations embrace the opportunities of AI quickly.

Staying ahead of the competition

There were many predictions about the potential impact of AI at the event, including:

MIT expects a 10–30% boom in revenue for strong and early AI adopters.
Artificial General Intelligence (AGI) could become common by 2026 and 60% of knowledge workers might face significant disruptions shortly after.
the pace of technological change will only get faster – quite sobering given the rapid changes we’re already experiencing.

Leadership AI literacy is essential

Technology is no longer limited to one area of the business. Executives must understand the impact of AI across strategy, governance, culture, and execution. They should be able to grasp the basics of large language models (LLMs) and the risks of misinformation and bias. Leadership must embed responsible practices and cultural changes across the organisation if they want to drive growth.

STEM-educated leaders in Singapore are recognised for their role in accelerating tech adoption. In contrast, Australia’s comparatively low percentage of STEM-educated leaders could stifle our progress. To help tackle this, decision-makers should tap into the expertise of early adopters, as their guidance can help navigate changes more smoothly and speed up organisational transformation.

You can lead well with AI

KPMG Australia adopted gen AI early and is recognised as the first organisation in Australia and first professional services firm globally,, to be certified in the recently released ISO 42001 standard, for our AI Management System.

Drawing on our own experience and lessons learned, we can offer insights to help organisations navigate the digital future, including governance, leadership upskilling, AI strategy, and accelerating behavioural change for quicker benefits from AI investments.

Responsible AI

At this pace of change, there’s a risk some organisations may forgo due diligence for speed. We believe fully embedding a Trusted AI framework from the outset is critical to successful implementation.

Trustworthy AI starts with alignment

The Summit highlighted that historically, AI safety has been underfunded compared to security and privacy, with increased focus only after concerns about AGI’s potential harms were raised.

Organisations also have varying levels of maturity across AI safety, governance and management, but the key focus areas shared included:

Understanding the organisation’s risk tolerance
Aligning AI governance with company values
Developing AI reliability and monitoring performance metrics
IP and other considerations in procurement processes.

Executives need KPIs linked to the ethical use of AI

If senior leadership expectations are not measured through the right KPIs, the ethical use of AI is likely to be deprioritised amid their many other responsibilities.

Leadership accountability is critical now as organisations are looking to establish and embed their responsible use of AI and comply with emerging principles, like Australia’s Voluntary AI Safety Standard.

You can build trust with AI

KPMG can support organisations in establishing a Trusted approach to AI, from building governance structures, performing maturity assessments, and advising on compliance with AI standards and regulations.

We can also help with leadership briefings on the responsible use of AI and support organisational change and transformation.

AI and the workforce

The fifth industrial revolution is here, transforming nearly every industry. According to the statistics shared at the Summit, 65% of jobs will be impacted by AI, but 52% of the workforce are reluctant to admit using it. Many employees also feel excluded from AI discussions, creating uncertainty about their interests being considered. For AI to deliver its promised productivity benefits, workforce adoption is crucial.

People need to remain at the heart of AI adoption

People are motivated by a positive future, a sense of competence, and having a say in changes. This means workers can adopt new technologies and thrive, but it requires intentional effort.

Organisations must identify early adopters and give them a voice to help foster widespread engagement. Investing in upskilling and offering safe spaces to experiment with AI will also help make new ways of working more real and approachable.

Build the right skillsets

The societal impact of AI was a major theme at the Summit. It’s clear we need to transform on both a personal and enterprise level.

By developing foundational skills now, such as the appropriate use of AI, prompt engineering, data management, and technology integration, organisations can set themselves up for the fast-paced advancements ahead.

Productivity must be unlocked ethically

To fully benefit from AI, we need to use it ethically and build trust. The challenge is the enterprise-wide implementation – getting everyone on board and informed about new developments. This means developing essential human skills and the expertise to oversee AI. It’s a big job, but crucial for using AI effectively and responsibly.

You can empower people with AI

KPMG can help people feel empowered through the adoption of AI, including organisational redesign, impactful learning and development, and enhancing your digital culture. We can also help build a roadmap to adoption, identify key business areas for AI use cases, and provide support with introductory training on AI fundamentals and its trusted use in your organisation.

AI for business intelligence and value creation

Finally, the Summit explored how organisations can maximise the value AI can deliver.

Start with strategic business drivers

Many organisations struggle to identify and prioritise the right business objectives for AI to address. It’s essential to start with the business problem and determine where AI can have the greatest impact and benefit, rather than beginning with the technology itself. This ensures AI is used effectively and provides meaningful solutions.

Return on investment isn’t just about the dollars

It was discussed that the acceleration of AI will challenge internal processes and leadership. Measuring AI’s ROI isn’t straightforward, and business processes are likely to need an overhaul.

The success of AI adoption will depend on upskilling, new governance, and demonstrating AI’s impact, rather than just the financial and productivity gains. What’s more, the current process of submitting a business case for long-term funding for investment, may need to be reconsidered given the amount of technology change likely to arise in that time.

R&D is now everyone’s business

Generative AI has lowered the entry barrier for many fields, benefiting small and medium-sized businesses. It opens doors for new players and disrupts established ones. Australians, with their natural curiosity, are well-positioned to take advantage of this.

The democratisation of innovation and data, driven by gen AI and the fast pace of AI development creates an incentive for organisations to move quickly but responsibly.

You can accelerate value with AI

KPMG has a global AI use case library with diverse examples across various industries and sectors to help organisations further understand the ins and outs of AI adoption.

We help organisations identify and implement the right AI opportunities, and where R&D can provide benefits.

Embracing AI: a call to action for business leaders

With the rapid advancements and growing complexities in the AI landscape, the CEDA Leadership Summit gave business leaders a chance to expand their understanding and make connections.

Technology is evolving due to increased computational power, competitive pressures, and an emerging AI arms race among major tech firms. This highlights the need for leaders in all organisations to embrace AI and equip their staff with the necessary skills and tools for the future, all while ensuring ethical and responsible practices. This task is challenging and requires comprehensive, organisation-wide change.