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Keystone chief urges CEOs to direct AI transformation

Chief executives must take direct responsibility for artificial intelligence transformation rather than leave it to technology departments, Keystone chief executive Jeff Marowits has argued, as the advisory firm expands its international operations and investment in executive AI capabilities.

His emphasis on leadership comes as businesses confront a widening gap between experimenting with AI tools and changing how their organisations operate. Keystone is positioning its advisory services around the decisions executives face over strategy, workforce skills, governance and competitive advantage.

The firm opened a permanent office in Sydney on 15 October, following the establishment of its Bengaluru operation in September. The two investments extend its Asia-Pacific presence at a time when companies are seeking advice on the commercial and regulatory consequences of AI adoption.

Marowits said in Keystone’s Sydney announcement that AI decisions were becoming decisions about business models, competitive advantage and regulatory exposure. He argued that access to widely available tools would not, by itself, distinguish successful companies from their competitors.

The distinction matters because deploying software across departments is not equivalent to redesigning processes, reallocating responsibilities or measuring business results. Such changes require choices about investment priorities and acceptable risks that extend beyond the authority of individual technology teams.

Keystone’s approach combines economists, technologists and business strategists. Its AI Navigator practice works with senior executives on organisational transformation, drawing on expertise associated with Harvard Business School professors Karim Lakhani and Marco Iansiti.

The company strengthened that offering in September by acquiring Zero Gravitas, a business focused on executive AI education and capability development. Keystone says the acquisition is intended to help corporate leaders develop the practical understanding necessary to oversee changes in their organisations.

The leadership challenge is reflected in broader corporate research. A KPMG survey of 400 chief executives at major US companies found that only 9 per cent considered AI transformative for their businesses, despite evidence of efficiency gains from AI agents. The findings suggest that successful individual applications have not necessarily translated into company-wide restructuring.

The survey also found that many executives expected to increase employment over the following three years while seeking additional technical skills and retraining existing staff. Those intentions illustrate the uncertainty surrounding AI’s effects on staffing, even as organisations increase spending on the technology.

For Keystone, India forms a significant part of its growth strategy. The firm announced its Bengaluru hub on 24 September and said it planned to recruit locally and expand its workforce over the next two to three years. It has not publicly specified a total hiring target for the operation.

Marowits described the launch as a long-term commitment to the market and said the company intended to make substantial investments in talent over 18 months. The office will serve enterprises operating in India while supporting Keystone’s international clients and contributing to its global AI Centre of Excellence.

The firm’s stated priorities include technology, financial services, legal services, healthcare and investors. Its work covers competition issues, litigation, technical investigations and assessments of AI systems, bringing together technical examination and analysis of commercial or legal consequences.

Bengaluru offers access to engineering and data-science professionals as well as technology companies and research institutions. Keystone expects the local team to collaborate with colleagues in the United States, Europe, the Middle East and Australia rather than operate as a separate regional consultancy.

Competition in AI remains unsettled across several layers of the market, from foundation models and computing infrastructure to business applications. The availability of competing systems gives enterprises choices, although switching costs, data requirements and access to computing capacity can constrain those choices.

Keystone’s expansion also reflects demand for advice on disputes involving digital platforms and technology markets. Its specialists examine source code, large datasets and system architecture to assess questions that may reach courts, regulators or corporate boards.

The firm also faces the challenge of demonstrating that advisory programmes produce measurable improvements rather than simply increasing familiarity with new technology. Companies must evaluate implementation costs, information security, accuracy and employee adoption before claiming lasting productivity benefits from their substantial AI investments.

The Sydney office began with about a dozen employees, including local recruits and staff seconded from existing operations. Keystone aims to roughly triple that team within two years. The firm said growing enquiries from financial services businesses were among the factors supporting its investment in Australia.



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