Innovation and compliance: The silver productivity bullet?

In an age of rapid technological change, including and especially AI, business leaders and HR professionals have a responsibility to ensure compliance permeates entire workforces and corporate cultures, one expert has argued.

Much has been made in Australia’s sociopolitical and professional zeitgeist about what will improve productivity nationally – for example, arguments have been made in favour of four-day working weeks, 4.5-day weeks, and the Right to Disconnect.

In the wake of Treasurer Jim Chalmers’ recent Australian Productivity Summit, also called the Economic Reform Roundtable, held in August, former assistant United States Department of Justice attorney, Asha Palmer, who now works as the senior vice president of compliance solutions at Skillsoft, suggested that the silver productivity bullet for Australian organisations is, in fact, innovation and compliance working in lockstep with one another.

Business leaders and HR professionals, Palmer noted in a commentary provided to HR Leader, have a responsibility to ensure compliance permeates entire workforces and corporate cultures.

“As regulatory frameworks evolve, the importance of robust internal governance, ethics and continuous upskilling becomes even more critical. Organisations that proactively strengthen their compliance posture now will be best positioned to navigate future developments in regulation, regardless of whether the rules become more or less stringent,” Palmer said.

“Organisations need strong established frameworks to ensure they remain compliant with local laws while aligning with global standards. This is especially true for AI, where transparency, explainability, and data governance are non-negotiable.”

To this end, Palmer said, a strong compliance framework should include: an AI policy that defines ethical usage and transparency standards.

“Clear, detailed, and understandable policies are essential to ensure consistent compliance across every department,” she said.

It should also include regular audits to assess compliance and identify areas for improvement, Palmer went on.

“These will provide important opportunities for continuous learning, so organisations can pinpoint areas for improvement and adapt to evolving ethical regulations,” she said.

“With AI, audits help employees strengthen their skills in ethical practice, compliance oversight and risk management.”

Cross-functional collaboration is also necessary, Palmer said, to ensure diverse perspectives are considered in decision-making.

“A collaboration of expertise from different departments – such as IT, HR, legal and policy making – enables organisations to better comprehend the capabilities and challenges that AI introduces,” she said.

Finally, Palmer said that leadership accountability, with executives leading by example and championing responsible AI adoption, is paramount.

“Clear internal communication from leadership will ensure that teams understand simplification as a shift in approach, not a lowering of standards,” she said.

“Reinforcing the continued importance of ethical AI practices and internal accountability will prevent complacency as regulations evolve.”