Gallagher urges Australian firms to lead AI workplace adoption
Australian businesses face a pivotal moment as artificial intelligence (AI) and generative AI (GenAI) reshape work environments. Gallagher advises employers to adopt a clear, structured, and transparent approach to AI integration. While technology now drives many operations, many organisations and their teams are still unprepared to fully benefit from AI or manage its risks effectively.
Why clear AI strategies matter
Digital skills are essential for workforce productivity and engagement. Negative experiences with technology can reduce employee morale and retention. GenAI adoption, which took off in late 2022, has outpaced previous tech waves like smartphones. Yet, many companies lack established guidelines or training programs for AI use. Often, no one is explicitly responsible for overseeing AI implementation.
Managing uncertainty and risks with GenAI
GenAI platforms generate content based on user prompts and are increasingly embedded in business tools like customer relationship management systems. Early adopters report faster product development and better talent management. However, challenges such as data security and ethical concerns remain under-addressed. According to recent research cited by Gallagher:
- Only 29% of employers worldwide have issued AI usage guidelines.
- Just 20% provide training or resources on AI for employees.
- Half of organisations have no designated AI oversight role.
This lack of leadership can leave employees uncertain, worried about job security, or overwhelmed by rapid change. Sarah Beech, CEO of benefits and HR at Gallagher Canada, stresses the need for companies to proactively communicate their AI strategies. She recommends defining how AI will be integrated and sharing that vision clearly to prevent misinformation and anxiety.
Leadership’s role in guiding AI adoption
Leaders set the tone for AI integration. They should treat adopting AI tools as a strategic priority. This starts with a clear intent statement, choosing secure GenAI platforms, and giving employees practical guidance. AI adoption paths vary—some organisations move cautiously, others more boldly. Leaders should focus on change management and help staff see AI as a tool that changes roles rather than eliminates them. The goal is to blend human skills with AI to add value.
Steve Coco, global managing director of HR and compensation consulting at Gallagher, highlights assessing organisational readiness. Early adopters with tech-savvy teams find change easier. Others need leadership to drive adoption; otherwise, they risk falling behind.
Preparing for workforce shifts
By 2027, nearly half of workers’ skills are expected to be disrupted. Routine tasks like data entry and basic customer service will decline. Skills related to managing AI, creative problem-solving, and collaboration between humans and AI will grow in importance. Gallagher recommends investing in training and development to help employees adjust to these shifts.
Focusing on a positive employee technology experience can boost satisfaction and business results. Investment in AI literacy and change management supports both productivity and retention. For management professionals looking to build AI skills and prepare their teams, resources such as Complete AI Training’s tailored courses offer practical pathways.
Insurance sector’s rapid AI adoption and cybersecurity concerns
The Australian insurance industry is among the fastest adopters of GenAI. A recent Gallagher Bassett whitepaper shows nearly 90% of insurers now use GenAI in claims operations, a 38-point increase from last year. Meanwhile, a global study including Australia and New Zealand reveals almost half of local leaders see intellectual property, data privacy, and regulatory compliance as top security challenges linked to AI.
As AI continues to transform industries, clear leadership, ongoing training, and a focus on ethical and secure use will be essential for organisations aiming to stay competitive and keep their workforce engaged.
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