TechnologyCommBankPrint articleMay 26, 2026 – 11.38amAI is already delivering value for Australian businesses, from reducing scams and fraud to improving customer experiences and freeing staff for higher‑value work. As AI evolves, expectations from boards, regulators and customers are rising, making trust and governance central to value.Brad Daffy, KPMG Australia partner, AI & Automation at the 2026 AFR Banking Summit. Max Mason-Hubers“Building and deploying an AI system doesn’t automatically add value to the organisation,” says Brad Daffy, partner, AI & Automation at KPMG Australia. “That comes down to three things. One, can you actually go live with the system – will it get through all your checks, testing and sign-offs? Two, will it be accepted by boards and regulators? And three, will customers actually use it, because that’s when the benefits are realised.“That’s why responsible, well-governed AI matters – it builds the foundation of trust that ultimately creates value.”Building trust through transparency and accountabilityResearch from KPMG and the University of Melbourne highlights the challenge: only 36 per cent of Australians are willing to trust AI, and 78 per cent are concerned about negative outcomes. For organisations investing at scale, governance and transparency are the levers that build and maintain trust.AdvertisementIn February, CommBank became the first Australian bank to publish a detailed report on its AI implementation, governance framework and practical applications.“When businesses commit to responsible AI, the benefits extend well beyond their own operations,” says CommBank’s Ranil Boteju. “Apart from giving customers an insight into our AI governance and management framework, the report is also helpful to other Australian businesses wanting to implement AI responsibly,” says Ranil Boteju, chief AI officer at CommBank.As agentic AI emerges, the black‑box problem intensifies, increasing the importance of explainability and oversight.“We’re investing in technologies that give us better visibility into how AI systems make decisions,” says Telstra Data & AI Strategy and Architecture executive Lisa Green. “When working at scale, good governance relies on the right tools, as well as human oversight. We’re working closely with our SaaS partners to make sure a similar level of transparency is built into their solutions.”Customers also want clarity on how their data is used, shared and whether it trains AI models. Steps that lift confidence include options for human intervention, strong monitoring and employee training.“Existing regulatory approaches are beginning to address automated decision making,” Green says. “Looking ahead, as people become more familiar with AI, we’re likely to see growing expectations for transparency and the ability to better understand and interact with AI-supported decisions.”Responsible AI also reaches into human rights, bias and discrimination. Telstra advocates through forums such as the UNESCO Business Council for ethical AI, while CommBank points to Australia’s AI Ethics Principles (2019) as a north star and uses them across the AI lifecycle – from design to deployment and monitoring.Accountability in practiceTurning governance into practice requires clear structures.Telstra’s Lisa Green says the organisation is investing in technologies that give them better visibility into how AI systems make decisions. KPMG’s framework is values‑driven, human‑centric and trustworthy, informing build‑buy‑use decisions. Daffy says the firm has mobilised a Trusted AI Council with senior leaders and an external member, implemented an AI management system, and become the first professional-services firm globally – and first Australian company – to achieve ISO 42001 certification for responsible governance of its AI management system.Telstra operates a structured risk-delegation framework. Every use case has a named owner and all new models or significant changes go to the AI Risk and Oversight Committee, with escalations to the Data and AI Council and senior executives for higher‑risk or strategic initiatives.CommBank’s AI systems are guided by the Group AI Policy and Code of Conduct.“These policies support our approach to safeguarding personal information, meeting our regulatory obligations, protecting against cyber risk, and keeping our customers and systems safe, stable and resilient,” Boteju explains.Third parties are managed through robust onboarding while sustainability also is part of responsible AI for the Bank.The bank matches electricity use in its Australian operations with 100 per cent renewable energy and engages third‑party AI providers on renewable energy and water‑related commitments.Responsible AI the way forwardDaffy stresses that responsible AI and sound AI governance should not be seen as hurdles.“Together, they scale value and build confidence,” he says. “Some organisations are doing a really good job of communicating how they’re using AI, and how they’re testing and monitoring their AI systems to ensure they’re operating in line with their AI principles. I think that’s a powerful new level of transparency.”Adds Boteju: “When businesses commit to responsible AI, the benefits extend well beyond their own operations.“We share customers and communities, so the more organisations that lead with transparency and accountability, the stronger the foundation of trust becomes for everyone.”Sponsored by CommBankThis content has been funded by an advertiser and written by the Nine commercial editorial team.SaveLog in or Subscribe to save articleShareCopy linkCopiedEmailLinkedInTwitterFacebookCopy linkCopiedShare via...Gift this articleSubscribe to gift this articleGift 5 articles to anyone you choose each month when you subscribe.Subscribe nowAlready a subscriber? LoginLicense articleFollow the topics, people and companies that matter to you.Find out moreRead MoreCommBankFetching latest articles