Around two-thirds of Australian organisations are already using, or actively planning to use, AI systems to support a wide variety of functions. Corporate leaders need to rapidly appreciate their existing legal duties and emerging responsibilities regarding AI, according to this report.

This report provides an overview of the current state of corporate governance concerning artificial intelligence (AI). The authors focus on the practices and obligations of company directors and senior executives of organisations deploying AI in Australia. Findings are based on surveys, structured interviews, and workshops engaging over 300 Australian company directors and executives, as well as expert legal analysis and extensive desk research. Company directors and senior executives bear distinct and interrelated legal duties and organisational responsibilities regarding AI.

Corporate leaders across Australia are increasingly aware of the potential of AI systems to create commercial value. However, they are also increasingly cognisant of risks that can flow from AI system failure, misleading or malicious use, and overuse. While the regulatory environment related to AI systems is evolving, when an organisation uses or relies on an AI system that causes harm, the organisation will generally be responsible. To ensure that AI systems are accurate, accountable, fair and fit-for-purpose, Australian organisations must match their growing investment in technological systems with a corresponding transformation of their governance systems.