Reflections & Refractions: A Peek Behind the AI Curtain in Oz

Holy information overload batman! The last few weeks have been pivotal for AI and data leaders across Australia, marked by several key forums and developments underscoring the transformative power of AI in reshaping industries, enhancing business operations, and driving innovation.

From the National AI Centre 's AI Industry Day, to ADAPT 's Data & AI Edge Summit to the The Australian Financial Review 's inaugural AI Summit we have certainly been drinking from the firehose.... all set in the backdrop of significant national investments and some big news on the EU's AI Act to boot.

I've taken a few days for reflection and refraction - here are some of my top takeaways...

Australian National Centre’s AI Industry Day

The "AI at Work" event, organised by CSIRO's Data61 and the National AI Centre , highlighted the importance of integrating AI into business processes responsibly. Experts showcased AI solutions across various sectors, emphasising the transformative power of AI in everyday business operations.

Stela SOLAR revealed a significant challenge: less than half of Australians feel comfortable with the use of AI at work. This underscores the urgent need for better education and awareness about AI technologies. Marshall Choy motivated attendees by stating, "AI is a journey." He encouraged businesses to not fear AI but to embrace its potential to transform industries. Luiz Pizzato from Commonwealth Bank shared insights on implementing AI in banking, such as the "Bill Sense" project, to provide better customer experiences.

Twenty companies presented their AI projects and products, focusing on agriculture, manufacturing, customer engagement, and health. Digital literacy and the importance of a strong data driven culture and responsible guardrails permeated discussions across the day.

ADAPT Data and AI Summit 2024 ??

ADAPT gathered over 180 of Australia's enterprise Chief Data and AI Officers responsible for companies generating 40% of Australia’s GDP discussed the critical foundations to be ready to embrace the AI tidal wave - Data literacy, data culture, and information architecture. Including recently released primary research into the priorities, challenges and investment focus areas for the nations CDAO's, CISOs and CIO's highlights included:

1. Data is the Lifeblood for AI ?? Data continues to be the cornerstone of AI initiatives. Over the past six months, ADAPT observed numerous organisations facing significant pressure to safeguard their revenue streams while striving to innovate and optimise for future success. 78% of data leaders have identified evolving data governance as their number one investment priority.
2. Elevating Data Governance, Literacy, and Culture for AI Excellence ?? Data governance and literacy are essential for AI success. Developing robust data governance frameworks and enhancing data literacy can significantly impact AI adoption however 44% of CDAOs say they don’t have the tools and resources needed to execute their strategy, requiring a 47% budget increase on average.
3. Challenges in Implementing Generative AI ?? Despite AI's potential benefits, many organisations struggle with structured education and frameworks for secure and accurate data access and utilisation. 66% of CISOs say they don’t have the tools and resources needed to deliver a world-class security service, requiring a 41% budget increase on average.
4. The Importance of Data Governance Frameworks ?? Data standardisation, data silos, and ineffective data processes are top barriers to a successful data strategy. Building a data governance framework is essential for facilitating safe data access for decision-making. Statistic: 94% of data leaders agree that providing accurate data for making business decisions is a key business outcome.
5. Building Data Literacy: A Blueprint for Success ?? Data literacy is crucial for realising business value from data and AI initiatives. However, on average, data literacy stands at a relatively low 35%.
6. Transforming Data Culture to Drive AI Strategy ?? Creating a strong data culture involves top-level support and collaboration across functions. 70% of Australian CIOs say they don’t have enough resources, requiring a 34% budget increase on average.
7. Understanding the Data Lifecycle ?? Fully understanding the data lifecycle enhances data integrity and decision-making. Dr. Shivaji Dasgupta stressed that “Fixing data at the source is crucial for its effective use.”
8. Aligning AI with Business Goals for Maximum Impact ?? Aligning AI initiatives with business objectives is crucial for maximising their impact. Since 2023, there has been a 44% growth rate in the likelihood of decision-makers adopting an evidence-based approach.
9. Strategic Approaches to AI Projects and Risk Management ?? Selecting AI projects that are lower risk but offer high upside helps build internal capabilities.
10. Insights from Industry Leaders on AI Integration and Data Maturity ?? ADAPT’s 2024 CIO Edge Survey indicates that organisations ready to leverage AI have proficient data teams capable of translating information into actionable business insights.

AFRs inaugural AI Summit

The inaugural AI Summit hosted by The Australian Financial Review brought together over 400 leading Australian business leaders to discuss the dawn of a new era in business innovation and transformative potential of AI.

Corporate Australia is preparing for a wave of change as artificial intelligence rolls out across every part of business, even as executives say they are unclear what the impact will be and are wary of being caught in short-term hype.

Speakers included Matt Comyn , CEO of Commonwealth Bank , who emphasised AI's potential to reshape the global technology industry, business landscape, and geopolitics. He noted, "AI will reshape industries in profound ways yet to play out." His observations came from a recent fact-finding mission in the United States, where he delved into the latest developments in banking and technology.

Key Takeaways:

• AI's Impact on Jobs: AI could claim 30% of executive jobs in the next two years. This projection underscores the urgent need for businesses to adapt and prepare their workforce for significant changes.
• AI and Formula One: Adam Driussi , CEO of Quantium , compared AI to driving a Formula One car. "All of us can drive... but we're not all fit to drive a Formula One car," he said, highlighting the specialised skills required to harness AI effectively.
• Enhancing Creativity: J.J. Fiasson, CEO of Leonardo.ai , argued that AI will enhance creative work rather than replace it. He emphasised that generative AI can act as a powerful tool for creatives, augmenting their capabilities and expanding their potential.
• Corporate Tax Reduction: Ed Husic MP called for a reduction in corporate tax to spur investment and innovation. He suggested that a more favorable tax environment could help businesses invest in new technologies and drive economic growth. Read more .

Additional Insights:

• Ethical AI and Regulation: The summit addressed the need for ethical AI development and robust regulations to prevent misuse. Discussions included the importance of transparency and accountability in AI systems.
• AI and the Workforce: Panelists discussed the implications of AI on the workforce, emphasising the need for upskilling and reskilling programs to prepare employees for AI-driven roles.
• Investment in AI Start-ups: There was a strong focus on supporting AI start-ups, with several sessions dedicated to exploring how investors can identify and nurture promising AI technologies.
• Global AI Trends: The summit highlighted global AI trends and how Australian businesses can stay competitive. This included insights into how AI is being adopted in different industries worldwide and the lessons that can be applied locally.

Australia's AI Sprint heats up!

Australia’s AI Sprint, a collaboration between the National AI Centre (coordinated by Australia’s national science agency CSIRO ), Australia's largest innovation community Stone & Chalk , and Google Cloud , has advanced 35 participants to Stage 2 ??. This initiative aims to tackle various national challenges using AI ??.

The true power of the AI Sprint lies in the sheer variety of problems these innovators are tackling. From the nuts and bolts of our supply chains to the way we run and govern ourselves, AI is a tool to build a better Australia.

Here are the key areas being tackled by the AI Sprint in Stage 2, and a snapshot of some of companies rising to take on these challenges.

1. Resilient and Efficient Supply Chains ??

• Automi : Enhancing compliance in critical sectors.
• IndEco Systems: Optimising the food supply chain.
• constructai.au : AI solutions for infrastructure inspection and monitoring.

2. Fair and Transparent Governance ??

• CX Guardian: Navigating AI policies for trust and productivity.
• Fourth Time AI: Screening digital communications for scams.
• jkl.io : Aggregating news with AI algorithms.

3. Affordable Cost of Living ??

• Trendonaut: Tracking public sentiment on affordability.
• Social Progress AI: Addressing workplace gender inequalities.

4. Better Life and Living ??

• DataAIT Technologies, INNEURVA, NanoCube Health: AI healthcare tools.
• Neo Care: Environmental monitoring for elderly care.
• Defining Future Solutions: AI-integrated safety systems.

5. Superpowered Workforce ??

• CognentAI: AI-powered HR and onboarding platform.
• Getmee AI: AI-driven skills coaching.
• Conja: Training mobile workforces with AI tools.
• Empathetic AI: AI tax copilot.

Participants will present their innovations at a Demo Day on June 20 to key industry stakeholders. Learn more here

EU AI Act will impact Australian Businesses

Europe's landmark rules on artificial intelligence will enter into force next month after EU countries endorsed on Tuesday a political deal reached in December, setting a potential global benchmark for a technology used in business and everyday life.

The European Union's AI Act is more comprehensive than the United States' light-touch voluntary compliance approach while China's approach aims to maintain social stability and state control.

The Act will have global reach. Companies outside the EU who use EU customer data in their AI platforms will need to comply. Other countries and regions are likely to use the AI Act as a blueprint, just as they did with the GDPR.

While the new legislation will apply in 2026, bans on the use of artificial intelligence in social scoring, predictive policing and untargeted scraping of facial images from the internet or CCTV footage will kick in in six months once the new regulation enters into force.

Obligations for general purpose AI models will apply after 12 months and rules for AI systems embedded into regulated products in 36 months. Fines for violations range from 7.5 million euros ($8.2 million) or 1.5% of turnover to 35 million euros or 7% of global turnover depending on the type of violations.

Full article here

Australia's AI Adopt Program dishes out $17M

The Australian Government announced the recipients of the $17 million AI Adopt Program on May 28, 2024. The program aims to help small and medium enterprises (SMEs) embrace AI to enhance their businesses. The grant recipients are:

• Boab AI Pty Ltd
• Digital Transformation Australia Pty Ltd
• elevenM Consulting Pty Ltd
• Redgrid Internet of Energy Enterprises Pty Ltd

These AI Adopt Centres will guide SMEs in modernising their operations and boosting productivity through AI. They will offer free specialist training to equip businesses and staff with the necessary skills to manage AI effectively. The centres will also collaborate with the National Artificial Intelligence Centre and the Responsible AI Network, supporting the government's ongoing efforts to ensure the safe and responsible use of AI across the economy. Read more .

Navigating Australia's AI Future

Reflecting on these recent developments provides us with a clear understanding of the current landscape of AI in Australia. Meanwhile, refraction signifies the need to adapt and pivot as AI continues to advance. The insights and strategies shared across these forums highlight key areas of focus:

1. Government: Establish robust and flexible regulatory frameworks that promote innovation and investment while safeguarding ethical standards.
2. Start-ups: Embrace AI to drive innovation and efficiency, leveraging government programs like the AI Adopt Program and National AI Sprint for support.
3. Technologists: Prioritise data governance, literacy, and culture to maximise AI's potential and address implementation challenges.
4. Business Leaders: Align AI initiatives with business goals, invest in data-driven cultures, and stay informed on global regulatory developments.
5. Upskilling: Invest in continuous education and training programs to upskill the workforce, ensuring they are equipped to handle the evolving demands of AI technologies.

By reflecting on these insights and refracting them into actionable strategies, we can harness the full potential of AI to drive Australia’s future growth and innovation. Embracing AI with agility and speed, while ensuring ethical and responsible use, will be key to navigating the rapidly changing technological landscape.

Australia is on the brink of a transformative AI revolution. The journey ahead is marked by opportunities and responsibilities alike.

Key areas of focus include:

• Responsible AI Adoption: Ensuring ethical practices and robust regulations to safeguard against misuse while propagating innovation.
• Enhanced Digital Literacy: Building a workforce that is adept at leveraging AI technologies for greater efficiency and innovation.
• Fostering Data-Driven Cultures: Encouraging a culture where data literacy and governance are paramount, enabling informed decision-making and strategic growth.

As AI continues to reshape industries, redefine business operations, and drive economic growth, its not just an opportunity for Australia's advancement but a call to action for all stakeholders to engage in shaping a future that is both technologically advanced and most importantly... human-centric.

Until next time,

Carrie