Australian executives treat AI as IT function, report

Staffbase has released research suggesting many Australian executives still treat artificial intelligence as an IT function, exposing gaps in governance and internal communication.

The report, Executive Priorities for the Next Digital Workplace Era 2026, surveyed more than 100 Australian business leaders and examined executive scorecards across the ASX 100. It found that management approaches to AI often focus on systems and tools while paying less attention to workplace behaviour, policy and employee understanding.

According to the research, 48% of Australian executives see AI as a purely IT responsibility, while only 17% view it through what the report describes as a people, policy and workforce lens.

That distinction matters, it argues, because informal or unapproved AI use can spread when staff are unclear about the rules. In many organisations, the behavioural dimension of AI use remains largely unseen.

"The risk isn't just technical; it's behavioural. When employees don't trust that leadership has a clear AI strategy, they build their own. That's shadow AI, and it's already inside most Australian organisations whether IT knows about it or not," said Ramak Salamat, Regional Vice President - JAPAC at Staffbase.

Communication gaps

The research also identified weaknesses in how leaders communicate AI policies. According to the report, half of leadership decisions assume employees have received and understood AI-related guidance without any verification.

That raises questions about whether businesses are checking that workers understand new rules governing AI tools. When organisations rely on assumptions instead of confirmation, policy intent can drift from day-to-day practice.

"For IT leaders rolling out new AI systems and governance frameworks, issues with communication may mean your new policies are misinterpreted. And if your employees don't know what the AI policy is, they'll make one up. That's not a communication strategy; that's a risk posture," Salamat said.

The report links these issues to broader concerns about trust and job security. Nearly one in three employees, or 29%, identified job security as their biggest concern about AI, suggesting internal messaging is not keeping pace with deployment plans.

In that context, the research argues that communication around AI adoption should sit alongside policy design and technical controls. Employee concerns, it indicates, are shaped not only by the systems introduced but also by how clearly leaders explain their purpose and limits.

Revenue link

Staffbase also linked people-focused leadership measures with company performance in the ASX 100. It found that companies exceeding their people and culture targets, including communication and change management, recorded average annual revenue growth of 17.2%.

ASX 100 companies that placed the greatest weight on people and culture in executive scorecards grew revenue at nearly three times the rate of peers, which the report put at 5.7%.

The findings suggest some boards and executive teams are treating workforce management and communication as measurable operating issues rather than softer cultural themes. In the context of AI, that approach may affect how quickly organisations can set rules, win employee acceptance and reduce unmanaged use.

Australia's larger listed companies have been under increasing pressure to show they can adopt AI without creating compliance, security or workforce risks. The report frames governance as extending beyond oversight of software procurement or model controls to include executive accountability for how policy is communicated inside organisations.

For companies moving AI into everyday operations, the research points to a familiar management problem: policy does not work if staff do not understand it, trust it or see how it applies to their jobs. That leaves room for unofficial practices to develop outside formal systems.

Staffbase, founded in 2014, provides employee communications software to large organisations. More than 1,500 enterprises use its products, according to the company.

"We found that the ASX 100 companies weighing people and culture most heavily in their Executive Scorecards are growing revenue nearly three times the rate of their peers, at 5.7%. People and culture isn't a question of values, it's a governance one. It truly belongs on the agenda alongside financial performance, risk, and security," Salamat said.