Australia's AI adoption poised for growth amid trust issues

As AI Appreciation Day approaches on July 16, attention turns to the significant impacts artificial intelligence is having across various sectors in Australia.

Companies are increasingly adopting AI to enhance operations and remain competitive, pushing projected AI spending in Australia to reach USD $6.4 billion by 2026. However, the enthusiasm for AI is tempered by ethical concerns and trust issues that remain pressing.

Vini Cardoso, CTO of Cloudera Australia and New Zealand, emphasises the ethical dimensions of AI in his recent commentary. Artificial Intelligence, particularly generative AI (GenAI), has substantially influenced the business landscape, prompting rapid adoption. Cardoso points out that while GenAI's visibility and utilisation have surged, enterprises struggle to keep pace with developing data, analytics, and AI business applications to turn potential into measurable impact.

Australia could unlock tens of billions of dollars in economic value by 2030 by responsibly accelerating GenAI adoption. Nonetheless, trust remains a significant barrier. Australia's Science and Industry Minister Ed Husic has identified low trust as a "handbrake" on AI implementation, despite AI's potential to support economic growth. Cardoso insists that it is crucial to overcome this trust deficit, given the substantial benefits AI offers. In a PWC study, 60% of Australian CEOs indicated that GenAI will radically transform their companies within the next three years.

Safety and security in AI usage also necessitate attention. Many generative AI tools, such as ChatGPT, include safeguards against misuse, but users have often found ways to circumvent these. Additionally, cybercriminals have developed their own generative pre-trained transformers (GPTs) to create malware and execute sophisticated phishing campaigns. Cardoso underscores the importance of collaboration between public and private sectors to better regulate AI and mitigate misuse risks. Australia's recent USD $17 million investment in the AI Adoption Programme to assist small-to-medium businesses exemplifies this collaborative effort.

Trust in AI systems relies on their ability to deliver fair and unbiased results consistently. This requires ethically designed systems using accurate, clean, and reliable data. Cardoso notes that modern data platforms with built-in security and governance controls can enhance an organisation's capability to manage data across its lifecycle, ensuring transparent AI-driven decisions. The case of United Overseas Bank illustrates this point, as they improved customer experience, revenue, and productivity by using a unified data platform.

Stephen Meek, Chief Information Officer at Pepper Money, also highlights AI's transformative impact on finance. AI's intelligent automation, facilitated by algorithms and machine learning, processes vast data at unprecedented speeds. This not only accelerates decision-making but also aids lenders in risk management, fraud detection, regulatory compliance, and real-time data analysis. However, Meek warns of potential AI misuse in cybersecurity and data privacy, citing sophisticated scams and phishing campaigns orchestrated by cybercriminals.

With AI becoming integral to finance, responsible utilisation of advanced technology is paramount. Meek acknowledges the need for regulations, with examples emerging from the UK and Australian Federal Government's discussions on high-risk AI applications. He stresses that optimal AI performance depends on high-quality, ethically governed, secure, and bias-free data. For lenders, aggregators, and brokers, meticulous data management is essential for unlocking AI's full potential in non-bank lending. Balancing AI advancements with human qualities is fundamental for the industry's success.

Despite the challenges, Meek is optimistic about AI's role in financial innovation. With advancing technology and regulatory frameworks, he envisions a future where complex loan scenarios and origination blend with industry advancements to provide brokers and customers unmatched speed and certainty.

Both Cardoso and Meek underscore the necessity for a responsible and ethical approach to AI adoption. As AI Appreciation Day nears, these insights provide a vital starting point for discussions on AI's transformative potential and the pathways to overcoming trust and ethical challenges.