By Lindsay Every
•
September 23, 2025
With AI transformation being a key focus for organisations, maximising the opportunities lies in understanding the leadership requirements and the approach to people engagement. Derwent explored this critical topic with senior executives in Sydney last week at our AI and The People breakfast event, examining three areas shaping the future: How people functions can support AI transformation. How AI is reshaping people management and operations. How leadership and team recruitment criteria are evolving in an AI world. The panel discussion delivered practical insights on how leading organisations are navigating AI workforce transformation, including the real changes, challenges, and opportunities they're experiencing. We heard from Peter Tonagh , Chairman at Quantium, and Catherine Walsh , Group Chief People Officer at Qantas, who shared their perspectives on leading AI transformation we’re still learning to understand ourselves. Highlighting that as leaders we cannot wait for certainty, or we will remain behind. We must adapt to lead through more ambiguity than we have faced before. Key Themes & Takeaways The Leadership Imperative : AI represents a fundamental leadership moment defining competitive advantage, with success being 80% about people and 20% about technology. Discussion emphasised leaders must reimagine value creation, shift from the "department of no" to AI-enablers, and take a holistic approach addressing mindset, skillset, and toolset together. Leaders must become 'Chief Excitement Officers' providing permission with guardrails while managing cognitive load impacts within their organisations, recognising that employees will use AI regardless of policy and that organisations not offering AI tools will lose talent. Strategic Implementation and Human-AI Partnership : The conversation outlined starting everything with AI as the default approach, focusing on capability over tools and customer benefit through clear use cases as competitive necessity. Successful implementation augments human judgement with AI enhancing HR practices including performance management and coaching with examples of enhanced performance reviews and recruitment outcomes. Leaders must become conductors of human-AI teams through effective engagement, setting direction and making judgement calls while ensuring AI amplifies capabilities, maintaining oversight while AI tools help leaders become better coaches, and addressing bias as a user problem requiring active correction. Future Talent Strategy and Trust Evolution : Critical attributes for AI-ready talent emerged as curiosity, critical thinking, persistence, agility, and optimism, challenging myths about graduates who are actually more AI-attuned than before. The conversation addressed balancing innovation with care, building trust through transparency, and ensuring continuous evolution while maintaining human connection as irreplaceable. Discussion emphasised continuous tool evolution requiring adaptable capabilities, documenting and sharing learnings, and ensuring people develop judgment to question AI appropriately. These insights underscore the critical need for Australian business leaders to embrace AI strategically while overcoming conservative risk tolerance. The conversation provided a comprehensive roadmap for organisations navigating AI transformation, from immediate implementation challenges to longer-term competitive advantages that will define future success. Our thanks to Lindsay Every , Group Managing Partner at Derwent for hosting this panel discussion, and to our guest speakers and attendees for their valuable contributions. Continue the conversation We'd love to hear your perspective on this topic! For further insights or to explore how Derwent can help you or your organisation, connect with our team at sydney@derwentsearch.com.au . To express your interest for future Derwent events, please reach out to us at events@derwentsearch.com.au