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Digital Transformation

The Industry Reacts: Can we make AI work in Australia’s national interest? Visa Visa new AI banking assistant to be adopted by financial firms Australians using AI to guide purchasing finds Zip The industry speaks – part 2: AI Appreciation Day 2026 51% of banks boosting productivity with pilot AI Submissions and nominations are now open for the Australian AI Awards 2026 PODCAST: Trust is the new attack surface, with ThreatLocker APAC director of operations Emile Barakat Need to Know: Aussie workers are increasingly exposing customer data to public AI OpenAI’s Altman won’t accept anything under a $1tn IPO valuation Bendigo Bank has over 3k ideas for agentic AI use AI is running two races – revenue growth and stable economy, says Citi CEO ANZ Bank CIO announces new technology strategy ABC’s Anthropic partnership will see AI generate articles Nine, Microsoft partner for AI use in news Legal trouble: Misleading AI images could lead to millions in fines PODCAST: Why cyber security’s next battle will be won by speed, with Qualys CEO Sumedh Thakar AI costs lead businesses to rethink their AI investment Bendigo Bank wants to have Australia’s first agentic SOC, but will human workers pay the price? 3 in 4 consumers would ditch a company if it suffered a major cyber attack Bankers warn of central market crash thanks to AI boom Artificial intelligence adoption surged in 2024–25, ABS reports PODCAST: Beware AI and influencers, NSW Rural Fire Service hacked, and say goodbye to the Essential Eight! Productivity Commission says the productivity slump can be cured by AI APRA instructs major lenders to share cyber insights AI law firm wins court case in legal profession first Major UK bank to launch over 1,000 new AI roles CPA warns against using AI tools and ‘finfluencer’ advice when tax time comes Suncorp trials agentic AI in insurance claims processing Calls for AI education grow louder PODCAST: Anthropic blocks Fable 5, Mackay Sugar tackles cyber attack, and the AFP gets tough on cyber crime Bunnings customers will soon be able to shop through Google AI Mode Westpac’s AI use will see the bank shift to a ‘digital-first service’ PODCAST: ThreatLocker’s Emile Barakat talks Essential Eight, cyber policy, and security as a human challenge Bank of England warns of AI deepfake scams featuring Nigel Farage and its governor OpenAI CFO says AI will be just as important as spreadsheet tools in the finance sector Virgin Australia rolls out ChatGPT flight search Tall tales and code: Anthropic launches Claude Fable 5 and Claude Mythos 5 PODCAST: AI profitability, hacker targets Aussie organisations, and Cyber Daily gets given Shirt of Invisibility Australian organisations to gain access to Anthropic Mythos CBA says businesses might tighten the belt on AI spending as expenses rise Japanese and UK banks look to OpenAI as Anthropic denies Mythos access Westpac finds AI subscriptions have skyrocketed Google Search is dead. Long live DuckDuckGo? PODCAST: Genetec’s Mathieu Chevalier on tricking AI and what Claude Mythos really means for the industry Magnifica Humanitas: Pope Leo XIV rails against ‘idolatry of profit’ in AI-focused encyclical Altman says AI won’t create a job apocalypse CBA begins testing of new companion AI that provides financial advice CBA CEO says AI must improve Aussie lives, ‘not just cut costs’ Aussies risk serious consequences by relying on AI for legal advice, lawyer warns PODCAST: Don’t let AI control your bank account, Qilin hackers target Australia, and law enforcement strikes back! 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The workforces impacted by the ‘AI axe’ AMP to ‘embrace’ AI as tech reshapes banking PODCAST: AI to change banking forever, Iranian cyber attacks, and Australia to tackle DPRK fake IT workers Atlassian’s Confluence gets a dose of AI as standard SaaS loses steam JPMorgan CEO says AI will disrupt banking more than even the internet did The CISO Brief: Real estate scams cost Australians thousands, new scam tactics, and fake North Korean résumés PODCAST: Lloyds Bank AI woes and wins, Aussie toy store hacked, and a new Children’s Online Privacy Code Aussie AI firm pleases Wall Street with $1.8bn data centre deal Anthropic the first AI giant to join Australian National AI Plan UK’s largest digital bank wants to bolster its data engineering with AI The CISO Brief: SOCI Act to change, banking budgets under strain, and are remote workers a cyber liability? PODCAST: AI firms to face child safety fines, Iranian hackers hacked and was Lockheed Martin breached? 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Op-Ed: What happens when access to intelligence is no longer your decision?
Kinetic IT · 2026-07-06 · via Digital Transformation

US government restrictions on access to frontier AI models – however brief – prove that access cannot be taken for granted.

Op-Ed: What happens when access to intelligence is no longer your decision?

When Anthropic temporarily withdrew access to its Fable model following a US government directive, the restriction lasted only a matter of weeks before access was restored.

For many organisations, the incident came and went with little impact. For others, it highlighted something much bigger than the availability of a single AI model. It showed that access to a frontier AI capability could change almost overnight because of decisions beyond the control of either the customer or the technology provider.

Where AI is hosted matters less than who controls access to it.

For Kishore Jayaram, chief transformation officer at Kinetic IT, that’s the conversation organisations should be paying attention to.

“The model came back, which was a good outcome,” he said.

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“What stayed with me was the discussion it prompted. It reminded organisations that access to an important capability can change because of decisions made somewhere else. As AI moves into production, that’s something leadership teams should understand.”

Jayaram encourages organisations to start with one practical question: “If a critical AI capability were available on Friday and then suddenly unavailable on Monday morning, what would we do?”

“It’s a practical way of understanding how dependent you’ve become, whether you have alternatives, and how quickly you could adapt if circumstances changed,” he said.

Historically, organisations have managed technology risk through procurement, vendor governance, cyber security, and business continuity planning. Those disciplines remain essential, and as AI becomes part of critical operations, they need to extend to the way AI capabilities are selected, integrated and managed. What’s changed is the nature of the dependency itself. Organisations aren’t just relying on infrastructure or software anymore. They’re relying on capabilities that sit inside rapidly evolving ecosystems, shaped by commercial decisions, regulation and geopolitical events well outside their control.

That broadens the questions leaders are asking. Rather than focusing only on whether a capability delivers value today, executive teams are increasingly weighing how resilient that decision will be over time, how quickly they could adapt if circumstances changed, and whether critical services remain resilient as the technology underneath them keeps evolving.

AI now belongs in the same planning conversation as infrastructure failures, supplier changes, and regulatory shifts because the commercial arrangements behind AI capabilities, and the conditions under which they’re available, will continue evolving.

“Frontier AI is still evolving quickly, and the organisations developing these models don’t control every variable that can influence availability. Building flexibility into your architecture from the outset makes it much easier to respond as technology, regulation and commercial arrangements continue to evolve,” Jayaram said.

That’s also changing how organisations evaluate AI itself. Capability remains important, but it’s no longer the only consideration. Cost, flexibility, governance and the ability to adapt over time are now part of the decision as well. Rather than assuming every use case needs the most advanced frontier model available, Jayaram believes organisations should start with the business outcome they’re trying to achieve and work backwards.

“We spend a lot of time talking with customers about minimum viable capability,” he said.

“Not every use case needs the most advanced model available. Start with the outcome you’re trying to achieve, then ask what the minimum level of capability needed to achieve it is. That usually leads to better architectural decisions, gives organisations more flexibility as the market evolves, and makes it much easier to adapt when circumstances change.”

AI will keep evolving, bringing new models, new providers and new opportunities to innovate. That’s good news for organisations because it creates more choice and more ways to apply AI. It also means that decisions made today will need to be revisited as the technology continues to evolve, which is exactly why Jayaram believes strategic decision making matters more now than it used to.

“AI is accelerating the speed at which assumptions can be tested,” he said.

“The organisations that will be best placed to take advantage of it over the long term are the ones building flexibility into their architecture, understanding their dependencies, and making decisions that preserve choice as the technology continues to evolve.”

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