AI’s Risk vs Reward: Cisco & Governance Institute Urge Risk Leaders to Help Unlock Australia’s AI Potential

New Report Reveals the Decision Paralysis is Impacting AI Uptake

News Summary

A new Cisco and Governance Institute report highlights Chief Risk Officers as catalysts for unlocking AI’s potential through safe, secure and strategic adoption.

Reveals four critical roadblocks stalling AI adoption: ethical and reputational, security and privacy, operational and strategic, and the risk of falling behind competitors.

Shares six decisive moves needed to overcome them: build knowledge, create AI Governance Committee, embed AI within business strategy, invest in appropriate controls, raise AI awareness across the workforce and measure AI project results.

Australia, 11th November 2025 – Cisco, the worldwide leader in networking and security, in partnership with the Governance Institute of Australia, today released a new report, Turning Hesitation Into Action: How Risk Leaders Can Unlock AI’s Potential.

The report features insights from Australian risk leaders, under Chatham House Rules, across industries including global banking, aviation, higher education, retail, international aid, and Australian charities; and finds that Australian organisations need to strengthen risk management to more fully harness the potential of AI, or risk falling behind in the AI adoption race.

The discussion reveals that organisations want AI’s rewards but fear its risks; a paralysis that’s leaving opportunities on the table and, in some instances, causing lasting damage. Consequently, the report calls on Australia’s risk professionals to take a more central role in elevating risk around AI to help organisations balance the risk/reward equation of AI integration and enable the country to pursue its AI ambitions safely and effectively.

One senior risk professional argues that they have often been overlooked for a seat at the decision-making table, a shortcoming the report argues could have major consequences for Australia’s AI adoption: “I have spent a lifetime trying to encourage people to take a risk intelligently.”

Governance Institute of Australia’s AI, Cyber and Technology Policy & Advocacy Lead, Daniel Popovski, said: “Change doesn’t occur in isolation. It requires us to start critical conversations and map support from board directors, executive teams, staff members and stakeholders. The conversations illuminated in this report demonstrate how governance and risk professionals have moved organisations from inaction to action through their own lived experiences.”

Read the report here

The Challenge and Opportunity of AI

AI is reshaping how organisations operate – improving efficiency, reducing costs, and creating new services. A 2024 report by Cisco, known as the AI Readiness Index, revealed only 4% of Australian businesses were fully prepared to deploy and leverage AI technologies. It also revealed that Australia lags in AI adoption compared to other nations. Additionally, the Governance Institute of Australia’s recent 2025 AI Deployment and Governance Survey also highlights gaps on investment. Without decisive action to build safe adoption pathways, Australia risks falling further behind global peers.

This important context set the scene for this report, as a catalyst for research and industry roundtables in which risk perception emerged as a key barrier to adoption.

At the time of concluding this report, Cisco’s 2025 edition of the AI Readiness index revealed early Australian data showing a sharp improvement in the percentage of Australian organisations ranking themselves as ‘Pacesetters’, meaning they are fully ready to leverage and deploy AI technologies (shifting from 4% in 2024 to 22% in 2025). This increase highlights how organisations may have progressed their education in what AI could do for them and are now shifting into risk identification to put AI pilots into production.

Still, the risk owners’ report warns that this rapid acceleration of confidence highlights the importance of ensuring AI’s growth is managed securely. Risk professionals must help organisations invest in comprehensive AI strategies and governance structures, not to slow progress, but to ensure foundations can support their ambition and opportunity. Without active risk management during this transition, Australia could lose the ground it has gained.

Four Critical Roadblocks to Adoption

The insights from risk leaders indicate that adoption is slowed by four critical roadblocks: ethical and reputational concerns, security and privacy challenges, operational and strategic hurdles, and the risk of falling behind competitors who successfully implement AI strategies.

For organisations to fully leverage AI, strong governance and controls are essential. Risk and governance professionals help play a central role, guiding strategy and ensuring initiatives are properly assessed, managed, and monitored.

Cisco’s Chief Technology Officer for Australia and New Zealand, Carl Solder, said: “Artificial Intelligence represents the single greatest challenge and opportunity to organisations that we have seen this century. Its potential is immense, but the path to success is neither straightforward nor guaranteed. What is clear is that organisations that move quickly to build knowledge and capability will be best placed to reap the rewards. For Australian organisations, that journey must begin now.”

The Critical Role of Risk Professionals

The report urges Australian boards and executives to elevate the role of risk professionals in shaping AI strategies, highlighting their ability to balance innovation with responsibility. By working with CEOs, boards, and technical specialists, risk professionals can guide AI adoption to deliver sustainable gains while embedding strong governance and risk practices.

“It is not just a matter of tech and risk; it is a whole organisation effort that is required to adequately understand it,” contributed by a participant in the Risk Roundtable.

The report outlines six key recommendations to help organisations move from hesitation to confident action:

Build knowledge – Close the AI literacy gap so risk professionals can appreciate AI’s true capabilities and map appropriate controls to risks.

Create an interdisciplinary AI Governance Committee – Bring together risk leaders, technologists, and business executives to establish governance principles and controls.

Embed AI within the organisation’s strategy – Align AI initiatives with overall business strategy to reduce ‘strategic drift’ and ensure investments are tied to measurable outcomes.

Invest in appropriate controls – Develop clear policies, safeguards, and sandbox environments for safe experimentation.

Raise AI awareness across the workforce – Ensure staff understand both the opportunities and risks of AI, reducing unsafe or unsanctioned use.

Measure AI project results – Monitor initiatives to stay within guidelines, capture lessons, and demonstrate value.

Collectively, these insights point to the need for a fundamental mindset shift – one that recognises AI risk as something to be understood and managed intelligently, rather than feared. By adopting a proactive and informed approach, organisations can position themselves to realise AI’s full potential.

About the Report

Turning Hesitation Into Action: How Risk Leaders Unlock AI’s Potential is a joint initiative between Cisco and the Governance Institute of Australia. It draws on insights from Cisco’s 2024 AI Readiness Index, the Governance Institute’s White Paper on AI Governance, and extensive discussions with risk professionals conducted under the Chatham House Rule. Participants represented diverse industries, including finance, insurance, education, not-for-profit, and retail, with experience from a global bank, an international airline, a group of eight university, a major international aid agency, one of Australia’s largest retail property companies, and Australian charities.

Additional Resources

Report: Turning Hesitation Into Action: How Risk Leaders can Unlock AI’s Potential

Cisco 2024 AI Readiness Index

Cisco 2025 AI Readiness Index (2025 AI Readiness Index for Australia launch in January)

Governance Institute’s White Paper on AI Governance

AI Readiness Assessment Tool

About Cisco

Cisco (NASDAQ: CSCO) is the worldwide technology leader that is revolutionising the way organisations connect and protect in the AI era. For more than 40 years, Cisco has securely connected the world. With its industry-leading AI-powered solutions and services, Cisco enables its customers, partners and communities to unlock innovation, enhance productivity and strengthen digital resilience. With purpose at its core, Cisco remains committed to creating a more connected and inclusive future for all. Discover more on The Newsroom and follow us on X at @Cisco.

Cisco and the Cisco logo are trademarks or registered trademarks of Cisco and/or its affiliates in the U.S. and other countries. A listing of Cisco’s trademarks can be found at http://www.cisco.com/go/trademarks. Third-party trademarks mentioned are the property of their respective owners. The use of the word ‘partner’ does not imply a partnership relationship between Cisco and any other company.

About Governance Institute of Australia

Governance Institute of Australia is the only fully independent professional association dedicated to the advancement of governance and risk practice in Australia. Our internationally recognised qualifications equip a diverse professional network of business leaders to make good decisions for the benefit of Australia’s economy and society. With a history dating over 100 years, Governance Institute is Australia’s leading and trusted voice of governance.