Turning Hesitation Into Action: How Risk Leaders Can Unlock AI’s Potential
A new report from Cisco and Governance Institute of Australia warns that hesitation and poor risk management are holding back the nation’s AI ambitions, and identifies risk leaders as key to unlocking its potential.
Titled Turning Hesitation Into Action: How Risk Leaders Can Unlock AI’s Potential, the report draws on the Cisco AI Readiness Index 2024, the Governance Institute’s 2025 AI Deployment and Governance Survey Report, and roundtable discussions under the Chatham House Rule to unpack the barriers to adoption.
Its message is clear: while many organisations recognise AI’s opportunity, few feel equipped to manage its risks.
A sharp rise in AI confidence
AI is reshaping business and society at unprecedented speed. Its potential to boost productivity, sharpen decision-making, and create new value rivals the impact of the internet revolution. Yet 86 per cent of organisations worldwide are not fully prepared to leverage AI’s potential (Cisco AI Readiness Index 2024), turning hesitation into a missed opportunity.
The Cisco AI Readiness Index 2024 found that only four per cent of Australian organisations felt fully prepared, compared with 15 per cent across the Asia–Pacific region. Meanwhile, the Governance Institute’s 2025 AI Deployment and Governance Survey found that 93 per cent of organisations cannot effectively measure the return on investment of AI initiatives, signalling a major capability gap.
As one roundtable participant noted, “While the benefits of AI can be difficult to quantify, the risks from poorly executed implementations are clear.”
However, the landscape is shifting. Early findings from the 2025 edition of Cisco’s Global AI Readiness Index show the share of Australian businesses identifying as Pacesetters (those more ready for AI) has risen from four per cent in 2024 to 22 per cent in 2025.
This improvement reflects growing confidence but also raises the stakes. As organisations move from exploration to implementation, risk professionals must ensure proper assessment and mitigation keep pace.
Four critical roadblocks to adoption
AI adoption is hindered by four major barriers: ethical and reputational concerns, security and privacy risks, operational and strategic hurdles, and the risk of losing competitive advantage to faster-moving organisations. Without robust frameworks, many boards take a ‘wait-and-see’ approach, increasing the likelihood of being left behind.
To leverage AI, strong governance and controls are essential. Risk and governance professionals play a central role in guiding strategy, establishing guardrails, and ensuring initiatives are properly assessed, managed and monitored.
Carl Solder, Cisco’s Chief Technology Officer for Australia and New Zealand, said: “Artificial Intelligence represents the single greatest challenge and opportunity to organisations that we have seen this century. Its potential is immense, but the path to success is neither straightforward nor guaranteed. What is clear is that organisations that move quickly to build knowledge and capability will be best placed to reap the rewards. For Australian organisations, that journey must begin now.”
Risk professionals as catalysts
The report places Chief Risk Officers and their teams at the centre of Australia’s AI transformation. Long seen as compliance custodians, today’s risk professionals are being called to take on a strategic leadership role, partnering with boards and executives to make AI adoption safe and successful.
By combining expertise in governance, risk assessment and control frameworks with a working understanding of emerging technologies, risk professionals can help organisations balance innovation with accountability.
This mandate demands collaboration across the organisation. Risk leaders must work closely with chief technology officers, data scientists and business unit heads to understand how AI systems operate, the data they rely on and the controls required for responsible outcomes. The 2025 AI Readiness Index highlights the need for equally proactive oversight.
As one roundtable participant noted, “Everyone plays a part in this – it absolutely is a whole-of-organisation thing.”
Effective AI governance cannot sit solely with risk or technology; it must involve HR, legal, communications and operations to build shared accountability.
The roadmap to yes
The report concludes that Australia’s AI opportunity now depends on turning hesitation into action, and that risk professionals are pivotal to leading that shift.
To reach ‘yes’, the report outlines six decisive moves:
- Build AI knowledge across the organisation
- Create an interdisciplinary AI Governance Committee
- Embed AI within the organisation’s business strategy
- Invest in appropriate controls
- Raise AI awareness across the workforce
- Measure AI project results
By acting early and fostering collaboration across technology, legal and people functions, boards can shift from risk avoidance to risk mastery, building trust, accelerating progress and turning governance into a competitive advantage.
While the future cannot be predicted, AI guarantees it will differ from the past. Organisations that thrive will be those that recognise opportunity, manage risk intelligently and act with purpose.
This is the path to yes, and Australia’s risk professionals are uniquely placed to lead it.
Additional resources
- Turning Hesitation Into Action: How Risk Leaders Unlock AI’s Potential
- Cisco 2024 AI Readiness Index
- Cisco 2025 AI Readiness Index (2025 AI Readiness Index for Australia launch in January)
- Governance Institute of Australia’s 2025 AI Deployment and Governance Survey Report
- Assessment Tool
About Cisco
Cisco (NASDAQ: CSCO) is the worldwide technology leader that is revolutionising the way organisations connect and protect in the AI era. For more than 40 years, Cisco has securely connected the world. With its industry-leading AI-powered solutions and services, Cisco enables its customers, partners and communities to unlock innovation, enhance productivity and strengthen digital resilience. With purpose at its core, Cisco remains committed to creating a more connected and inclusive future for all. Discover more on The Newsroom and follow us on X at @Cisco.
Cisco and the Cisco logo are trademarks or registered trademarks of Cisco and/or its affiliates in the U.S. and other countries. A listing of Cisco’s trademarks can be found at http://www.cisco.com/go/trademarks. Third-party trademarks mentioned are the property of their respective owners. The use of the word ‘partner’ does not imply a partnership relationship between Cisco and any other company.