Australian boards focus on AI risk while global peers pursue transformation, and surveys show local firms lagging on AI investment, with leaders urged to move beyond cost cutting towards new revenue streams and operating models.
A superficial understanding of artificial intelligence (AI) is thwarting many Australian wealth management organisations from benefiting from the real potential of AI.
AI, for instance, is often considered a threat, a destroyer of what is existent by many workers, management and leaders. But deeper understanding shows it offers much more.
It is currently changing many industries, with the status quo no longer an option, and that stability will never return. Anyone who thinks the age of AI will be short-lived should take note: quantum computing will further accelerate the pace of change over the next few years.
By contrast, some local firms are quietly leading their sectors not just here, but also around the world, due to the way they harness AI. There are increasing examples of firms and government departments adopting AI in ways that are seeing them transforming whole industries and sectors.
Most people don’t recognise how many opportunities are already being created. Most of those succeeding are being quiet about their competitive advantages. This includes at several banks, superannuation funds, health care providers and more.
AI is now a non-negotiable journey that all executives must take. And how leadership and senior management embraces AI is a predictor of their future success, or failure.
Differing views on use
There are global differences in commitment to embedding AI. For example, the Chinese have what some commentators have described as a ‘greedy’ approach, wanting as much AI help as possible in their business and operations. Americans are similarly positive, embracing AI to increase productivity and to develop new operating processes.
Overseas, AI is being viewed much more as a commercial and competitive opportunity to be seized; while Australian boardrooms are preoccupied with considering the risks and what could go wrong?
By contrast, BCG’s 2026 global survey found roughly three-quarters of managers in India and Greater China expect AI to be of great benefit. Australian organisations that are world leaders in using AI tend to be ones that are using AI not just as a tool to improve certain business practices, but rather using AI as a means to transform whole operations.
One expert, who advises major publicly listed boards and Government policy units, says much of the Australian AI conversation is “driven by fear”. She also notes that companies pulling ahead rarely publish case studies.
“They are not talking about what they are doing because it’s giving them a competitive advantage. You would be surprised how some of them are harnessing AI and the improved results they are achieving. It is transforming their operations, their business.”
Australian caution in the data
Australian leaders are more cautious, even ‘fearful’, according to recent Forum of AI & Transformation specialists. As an example, Deloitte’s 2026 survey of more than 3,000 senior leaders found only 65 per cent of Australian respondents plan to lift AI investment next financial year. That is almost 20 per cent below the global average.
Thoughtworks’ Australian study found the focus on AI by local management tends to be towards cost reduction. A further one in six local management teams report they have no AI strategy at all.
AI need not lead to job losses
Consider the example of IKEA, which introduced its ‘Billie’ AI-powered chatbot to handle routine customer queries, and reduce costs. This impacted more than 8,500 call-centre staff. But rather than be retrenched to save money, they were retrained as remote design advisers. This led to a new sales channel worth about €1.3 billion (more than A$2 billion). AI technology not only reduced costs, but when coupled with other AI created a whole new revenue stream.
Thus, AI is not just a way to cut costs. It is also a pathway to generate whole new areas of revenue streams and redesign human work, as demonstrated by IKEA. The two can go hand in hand. As such, AI is not just about technology for savings, but also a transformation and growth opportunity.
The Singapore Government has set up a Ministry to reskill their workforce. In cooperation with the unions, they are seeking to ensure that becoming an AI leading country does not require a reduction in employment.
The Deloitte survey found a third of Australian management remain focused on using AI to automate existing processes. These managers are not developing new ones. Deloitte’s national AI lead has urged leaders to stop running isolated use cases and make enterprise-wide decisions.
AI is a transformational opportunity (rather than a technology driven efficiency tool). In Australia, AI is being more quickly adopted by smaller organisations that have ‘nothing to lose’. AI as a transformation driver provides the opportunity for any organisation, business or executive to become a category leader.
Transformation, not technology
The magnitude of change we’ve experienced in the past two years with respect to AI is equivalent to the changes in business practice over the past four decades. “AI is like the discovery of fire, it enables many more uses to be developed. Shaving time off a report or a slide deck is the superficial side. The real shift where value is created is new processes, new products, new systems and new ways of doing business to better meet customer needs. Like the discovery of fire lead to massive rethinking of business opportunities driven by steam and then electricity.”
AI is not simply new technology. Nor is it commoditised intelligence. Sure, it can research, execute and often think better. As such, using AI at its best, its most productive, requires a shift in management, in leadership. This often also requires some new leadership skills. Business moves from a relatively stable world that required fine tuning to a continually more dynamic environment requiring continual re-invention, continual transformation.
This is one reason why overseas AI implementation is migrating from IT and Data management towards Operations, HR and/or CEO linked Project Management. As once outside IT, AI can better enable the development of different, new, improved operating models.
The leadership challenge
Unfortunately, many executives are intimidated by AI, aware their weaknesses may be exposed. One CEO gave an example of a recent discussion he asked an executive “Did your questions come from the Copilot, or are they your questions?” The answer was Copilot. His response was “I don’t really care what Copilot said. I want to know what your questions are as the responsible manager.”
Organisations still need leaders with vision (rather than a checklist) to drive direction; leaders who can develop a ‘North Star’ and then determine where and how AI can achieve that. This to be followed by a deeper company-wide alignment to develop alignment and passionate support for the reinvention.
Leadership skills that are more in demand going forward are critical thinking, open communication and a commitment to continuous reinvention. No longer acceptable is just having a traditional leadership checklist and a three year plan.
Adoption of AI is now being measured financially. Those that are implementing strict financial and performance parameters, while embedding agentic AI, are increasingly outperforming those that do not.
What’s next?
AI is no longer a technology issue as per the tech boom of the early 2000s, but rather a transformation opportunity. Above all, don’t be resistant to change, to transform. It is changing the way we are working (ie human and AI hybrid) and is similarly changing management.
The end game is now different for leaders: there is no set end in sight.
Overall, AI is not just new technology, it’s also a transformative agent. Already, transformation orientated managers are the ones currently being accelerated upwards within organisations. They’re the ones that stand out in this new world.
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