AI for Executives: Navigating Regulation, Responsibility, and Organisational Readiness

17.02.26 11:16 AM - By Devaan Parbhoo

As local and global debates over AI regulation intensify, leaders need a blueprint that aligns policy awareness with cultural readiness and risk management. You have probably asked your people to use AI at work but have you, unintendedly, left an empty void? Drawing on recent calls for public-interest regulation, this article outlines how you can steward ethical adoption, set governance guardrails, and enlist HR to reskill teams without stalling innovation.

Image credit : Luca Bravo, Unsplash

A partner at KPMG Australia was recently fined for using AI to cheat on an internal course about…using AI. The irony is almost surgical. After uploading training materials into an AI platform to generate answers, the partner was forced to retake the test, while more than two dozen staff were also caught misusing AI in internal exams this year alone. The incident has since spilled into regulatory scrutiny and public debate, exposing a deeper tension: organisations are racing to adopt AI, yet struggling to govern its use, even in the very programmes designed to teach responsible adoption.


Here's the ugly truth, your people are doing the same! They're using their own personal AI tools and subscriptions in the workplace, uploading context into these tools (i.e. ChatGPT, Perplexity, Gemini, Claude, etc.) effectively creating "Shadow AI" which exposes companies to systemic risks, including data leaks and compromised internal processes. So while AI adoption is skyrocketing, management teams has largely failed to implement the frameworks necessary to manage usage of it safely, responsibly and ethically.

Closing the "gap"

We've built a AI Strategy & Capability Blueprint, an asset for strategic planning on how AI can be deployed for scale and governed by your business regulatory requirements and ethical practices.


At its core, the blueprint is organised into three building blocks: Strategy & Goals (the WHY), Assessment & Training (the WHAT), and Execution & Measurement (the HOW). This structure is deceptively simple, but strategically powerful. It forces leaders to ask: Why are we investing in AI literacy? What exactly must change across roles? And how will we operationalise and measure this shift?

DescriptionOutcomes
 Strategy & Goals (WHY) Defines the strategic rationale for AI literacy. Aligns AI capability-building with core business objectives (e.g., efficiency, innovation, customer experience, compliance). Identifies high-impact AI use cases and sets measurable, role-specific target outcomes.Strategic alignment and executive accountability. Ensures AI literacy investments directly support business value creation and regulatory readiness. Embeds AI governance at the strategic level by clarifying purpose, risk appetite, and compliance priorities. Prevents fragmented AI adoption and positions literacy as a strategic enabler rather than a training initiative.
Assessment & Training (WHAT) Assesses current AI literacy across conceptual, ethical, and practical dimensions. Conducts gap analysis between current and target states. Designs tailored development interventions for executives, managers, and operational staff.

Risk mitigation and responsible capability development. Strengthens ethical oversight, reduces misuse and bias, and builds role-appropriate competencies that support compliant AI deployment. Enhances decision quality and operational reliability by ensuring workforce readiness aligns with AI governance standards and business objectives. 

Execution & Measurement (HOW) Establishes implementation plans, allocates resources, assigns ownership, and defines metrics. Tracks literacy improvements, AI adoption, operational impact, and compliance indicators. Promotes continuous iteration and refinement.Operational control and sustainable transformation. Institutionalises AI governance through measurable KPIs, clear accountability, and performance tracking. Links literacy development to tangible business outcomes (e.g., efficiency gains, compliance improvements, innovation metrics). Enables adaptive strategy in response to technological and regulatory change.

It's not merely an Educational Tool, it is a Governance Architecture.

When leaders move through these three phases deliberately, AI literacy becomes the connective tissue between digital transformation ambition and responsible execution. Are you ready to bridge the governance gap?

Devaan Parbhoo