AI Success Depends on Governance, Not Technology Alone

By Brian Martin, WA State Manager, Governance Institute of Australia

Regulators are sharpening their focus

AI governance is moving up the regulatory agenda. Panellists said boards should expect closer scrutiny as regulators sharpen their focus on how organisations use AI.

The Australian Signals Directorate is updating guidance that could affect both businesses and not-for-profits. At the same time, criminals are using AI to become more sophisticated. Panellists warned that AI is making it easier to bypass anti-money laundering controls, including identity verification checks.

Data Governance can mitigate cyber risk

As criminals turn to AI to mount cyber attacks and breaches, panellists urged every organisation to revisit how it handles data retention and to ask a simple question: what data do we actually need to keep? Third-party providers also came under scrutiny. Organisations should hold suppliers to the same data governance standards they expect of themselves. Weak links in the supply chain can quickly become governance failures.

Governance and Risk Professionals set the AI guardrails

Company secretaries are emerging as key players in AI governance.

The company secretaries panel highlighted their role in developing policies, setting boundaries and helping organisations use AI safely. Governance teams are often best placed to translate board expectations into practical rules.

The panel also cautioned against uploading sensitive material, including board documents, that could find its way into the public domain. Delegates heard that company secretaries should give board members clear guidance on using AI and make plain the red lines that must not be crossed.

Adopt an ‘Always-on’ approach to AI governance

AI is changing too quickly for governance to be treated as a one-off exercise.

A panel on AI implementation urged governance professionals to adopt an always-on approach. Governance frameworks, oversight mechanisms and risk settings should evolve as the technology evolves.

At the heart of every AI decision, the panel noted, is the board’s role in setting direction: does the organisation want to be innovative in its use of AI, or to keep tighter control? That choice should be grounded in the organisation’s strategy, purpose, culture and risk appetite, and boards should be ready to revisit each of these as needed.

While many organisations still treat AI implementation as an IT responsibility, the panel urged boards and chief executives to recognise it as a matter squarely within their remit.

Where AI Governance Starts

• Move quickly, test ideas and learn from failures. AI rewards organisations that experiment thoughtfully.
• Remember that human judgement will always be needed. Train your teams to harness AI, manage it well and apply critical thinking to the answers it provides.
• Do not wait for the perfect destination or fixate on the finish line. Get your organisation onto the starting blocks first, with a governance framework strong enough to support the journey.

Coast to Coast, the Governance Challenge Continues

From Adelaide to Brisbane and Sydney, then to Melbourne and Perth, the 2026 Governance and Risk Management Forum (GRMF) travelled more than 7,000 km to connect governance professionals across the country. It was inspiring to hear new ideas, share experiences and learn from peers tackling similar challenges. The conversations reinforced the value of a strong professional network committed to better governance.

We look forward to continuing the conversation when the GRMF roadshow returns in 2027.