Employees Don’t Have the Capabilities to Use AI Responsibly

Fewer than two-thirds of organizations across Southeast Asia believe that their employees have the required level of skills and capabilities to use AI solutions responsibly, according to a new report co-developed by Deloitte Access Economics and Deloitte AI Institute.

The report, titled “AI at a crossroads” surveyed nearly 900 senior leaders from 13 countries across Asia Pacific to identify what good AI governance looks like in practice.

The conclusion? With investments in AI projected to reach USD117 billion by 2030 in the Asia Pacific alone, there is a need for robust governance frameworks to enable businesses to adopt AI more effectively, build customer trust, and create paths to value and scale.

Not just a compliance issue

According to the report, organizations with more mature AI governance frameworks report a 28% increase in staff using AI solutions and experience nearly 5% higher revenue growth. However, 9 out of 10 (91%) of organizations surveyed are categorized as having only “basic” or “in progress” governance structures.

Clearly, there is an urgent need to improve AI governance practices. One of the commonly cited concerns includes security vulnerabilities such as cyber or hacking risks. Other top concerns include those pertaining to privacy, such as confidential or personal data breaches and the invasion of privacy due to pervasive surveillance.

“Effective AI governance is not just a compliance issue; it is essential for unlocking the full potential of AI technologies. Our findings reveal that organizations with robust governance frameworks are not only better equipped to manage risks but also experience greater trust in their AI outputs, increased operational efficiency, and ultimately greater value and scale,” said Dr. Elea Wurth, Lead Partner of Trustworthy AI Strategy, Risk & Transactions, Deloitte Asia Pacific and Australia.

AI governance recommendations

The report recommends that organizations prioritize AI governance to realize returns from AI, leverage the broader AI supply chain, develop employees’ skills and capabilities to manage potential risks, and ensure AI transformation readiness across the business.

This means a continuous evaluation of AI governance across the organization’s policies, principles, procedures, and controls. Moreover, Deloitte notes organizations should be transparent about their long-term AI strategy, the associated benefits and risks, and provide training for teams on using AI models while reskilling those whose roles may be affected by AI.

“The rapid pace and scale of AI adoption has meant that organizations are encountering AI-related risks in real-time as they experiment and roll out the technology,” said Chris Lewin, the AI & Data Capability Leader at Deloitte Asia Pacific and Southeast Asia.

“Given that Southeast Asia and the wider Asia Pacific region are hotbeds for cyberattacks, business leaders are understandably most concerned about security vulnerabilities, which can arise from the AI solutions themselves, the vast amount of data used by these solutions, or a combination of both.”

According to Lewin, organizations that have implemented incident responses and remediation plans are less likely to be concerned about such risks, highlighting the importance of effective governance to address concerns about AI use.

The full report can be accessed here.

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