‘Organisations to prioritise behavioural change to boost AI's adoption’

10 March 2025 Consultancy.com.au

As Australian organisations ramp up their AI investments in 2025, they will this year give more focus to driving the behavioural and organisational changes needed to maximise their spending and drive long-term value, predicts Jim Freeman, Chief Technology Officer at Kyndryl.

“From financial services to retail to knowledge work, businesses that have put generative AI use cases into production have seen first-hand both how impactful a technology it can be, but also the key success factors needed to drive real productivity and efficiency gains over the long term,” said Freeman.

One of those success factors undoubtedly relates to the human side of AI. “Cultural transformation is extremely important for businesses looking to maximise their AI investments” noted Freeman, drawing the analogy with any other major digital transformation.

“Organisations need to create new approaches and cultures, and change how they set KPIs and measure outcomes, if they are to maximise values. Those at the forefront are coming to this conclusion – AI isn’t a technology play, it’s a way-of-working play.”

Freeman says that delivering cultural transformation is more than just building skills through training and mentoring. It also requires a concerted effort to build trust, commitment, and ensuring that ways of working are deeply embedded within the DNA of the organisation.

“With effective adoption the biggest barrier to AI success, we’ll see businesses work to build employee trust and understanding of AI systems, as well as adapting workflows to ensure they can be integrated seamlessly into daily operations. Businesses will invest in change management programs, upskilling initiatives, augmented KPIs, and clear communications.”

“Those at the forefront will co-design AI systems with end users, and foster a culture that rewards innovation and learning,” he continued. “Working together with the end users will give leaders the practical insights needed to ensure high adoption, meaning that AI-driven activities are seamlessly integrated into the daily work lives and routines of staff. This is key to ensure long-term success.”

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