As we step into 2026, AI is everywhere. Expectations are soaring, and for many businesses, that’s cause for pause. The question is no longer “How do we apply AI to a problem?” as most organisations have cracked that. The real challenge is “How do we reorganise the business to benefit from AI?” This is a strategy question, not a technology one.
The temptation is to retrofit AI into existing processes, but that’s yesterday’s thinking. The organisations that will thrive are those that look beyond incremental gains and ask: What does an AI-first future mean for our business model? This requires a profound shift in mindset, i.e. a two-lane approach to return on investment (ROI).
Lane One: AI for Productivity and Efficiency
This is the low-hanging fruit. Automating workflows, optimising operations, and cutting costs. ROI here is tangible, measurable, and reassuringly familiar.
Lane Two: AI for Transformation
This is where the real game begins: reimagining products, services, and even markets. It’s about creating new value, not just squeezing more out of the old. The challenge? ROI becomes harder to define upfront. You’re investing in possibilities, not certainties.
Scalability is the next frontier. Many organisations have dabbled in proofs of concept; now comes the harder part, which is embedding AI at scale. Inaction is a high-risk strategy. As competitors, suppliers, customers, and regulators accelerate their AI adoption, the message is clear: If you don’t do it, it will be done to you.
Critical to success is continuous education and hands-on engagement. AI literacy must permeate every level of the organisation, from the boardroom to the front line. Personal productivity gains are the gateway starting points; strategic transformation is the destination.
And let’s not forget Responsible AI. Trust, accountability, and human-centred design aren’t optional extras, they’re the licence to operate. AI must deliver benefits while minimising risk and negative impact to individuals, communities, and society.
This focus on responsibility naturally links to governance. As AI adoption accelerates, strong governance frameworks become critical, not just for technology, but for the economy as a whole. Australia faces a unique challenge here. While major economies are simplifying regulation and cutting compliance costs, we risk falling behind. A dynamic, resilient economy demands a whole-of-system approach: streamline processes, reduce duplication, and clear the regulatory undergrowth.
For 2026, the governance agenda is clear:
- Performance – skills, innovation, growth
- Digital – AI, cyber, data governance
- Climate – risks and opportunities
AI isn’t just a technology revolution; it’s a strategic inflection point. As it marks a turning point, the question isn’t whether you’ll use it, but whether you’ll lead with it.