Governance and AI

Artificial Intelligence (AI) is not just a current buzzword; it is here to stay. This creates tremendous opportunities but also can lead to complex situations and risks which need to be mitigated/managed. Boards will play an important role in managing effective governance for harnessing the benefits of AI as well as managing the evolving challenges.

The key questions that Boards have already started asking:

1. Strategic alignment:
   1. How can we use AI to implement our strategic objectives?
   2. Will AI drive long term competitive advantage?
   3. Have we defined our AI /roadmap, and do we have the resources needed?
   4. What are other players in the industry doing?

2. Ethical adoption
1. How do we ensure our AI systems make accurate, bias-aware decisions?
2. Does our AI strategy align with our organizational values, purpose, and culture?
3. Have we evaluated the broader societal impact?
4. Have we planned to test and remove biases and address impacts?
3. Stakeholder interests
   1. Are we monitoring impact assessments on a regular basis?
   2. How are we engaging with stakeholders on ethics and technology?
   3. How do we identify AI related risks from vendors and suppliers?

4. Risk management
   1. What are the key AI risks—such as security breaches or safety issues—and how can they be quantified?
   2. What is the Board’s risk appetite and is that reflected in the risk register?
   3. Are our AI systems sufficiently robust to avoid causing unintentional harm?
   4. How are we ensuring compliance with rapidly evolving AI regulations?
   5. Are there measures in place in case AI develops issues?

5. Resource management
   1. Have we trained our people to implement AI and interpret the results?

6. Accountability
   1. Does the Board have skills and/or knowledge to consider risks and issues?
   2. Are the Board aware which areas of the business use Machine Learning or Artificial Intelligence?
   3. Who is formally accountable for AI-driven decisions and their real-world consequences?
   4. Do we have an established AI governance board or committee, and is AI a standing agenda item?
   5. Is there a structured and continuous method of evaluation of AI tools being used? Any need for a third-party audit?
   6. What is our liability if the AI causes an ethics or compliance violation?

Early days in this evolving global revolution affecting most businesses.