Responsible AI Adoption: Practical Steps for Small and Medium Businesses

Artificial intelligence (AI) is transforming how businesses of all sizes operate. Once considered the domain of large corporations, AI is now accessible to small and medium sized businesses, helping boost productivity, streamline operations, and improve customer service. However, with these opportunities come responsibilities.

Responsible AI adoption means ensuring systems are safe, lawful, and aligned with your business values. It’s about using AI in ways that build trust with your customers, protect your business, and contribute to long-term success.

The Department of Industry, Science and Resources has released two complementary guides — Foundations and Implementation Practices — outlining six essential practices for AI governance. Businesses should focus on the Foundations guidance as a starting point for building structured and compliant AI management frameworks.

1. Establish Accountability

AI needs clear oversight. Appoint someone within your leadership team to take responsibility for how AI is used across the business. Develop a simple AI policy that outlines where and how AI will be used, what standards must be met, and how risks will be managed.

2. Understand Impacts and Plan Accordingly

Before introducing AI tools or systems, consider who might be affected: employees, customers, or suppliers. Think about potential risks like unfair outcomes or misinformation. Make sure there are easy ways for people to ask questions, raise concerns, or challenge decisions made by AI.

3. Measure and Manage Risks

Not all AI systems carry the same level of risk. Put a process in place to assess new AI tools before they’re used, especially those that influence important decisions. Regularly review performance and set up extra checks for higher-risk applications.

The Department of Industry, Science and Resources has further released an AI screening tool which is designed to help organisations determine what level of governance oversight each AI use case needs.

4. Ensure Transparency

Being open about your AI use builds trust. Keep records of which systems are in use, what they do, and how they’re monitored. Let people know when they’re interacting with AI — whether it’s a chatbot, automated decision, or AI-generated content.

5. Test and Monitor Performance

AI systems don’t stay the same over time. Test them before you go live, and monitor them regularly to make sure they stay accurate, secure, and effective. Good data management and cybersecurity are essential parts of this.

6. Maintain Human Control

AI should assist, not replace, human decision-making, especially for critical tasks. Make sure staff can override or switch off AI systems if needed and always have a backup plan in case an AI system fails.

Building Trust Through Responsible Use

Using AI responsibly isn’t just about avoiding problems, it’s a way to build trust with your customers, employees, and partners. By taking the time to embed these practices now, small and medium sized businesses can reduce risk, improve outcomes, and create a strong foundation for sustainable innovation.

How can GML assist?

GML can assist small to medium business with their AI adoption. We recommend the following:

• Businesses have a clear and transparent AI policy document that governs employees use of AI in the workplace.

• Reviewing your external and customer contract to ensure that the scope of AI use is clearly defined and scoped for the customers benefit.

• Understanding the regulatory framework in your industry around the use of AI.

Please contact us if you have any questions about your company’s adoption of AI. You can read access the Department of Industry, Science and Resources two complementary guides — Foundations and Implementation Practices here.