Staying informed about AI ethics is essential today, as a company’s readiness depends on the strength of its governance team. Legal and governance experts must advise the board on the implications of AI, ensuring the organization moves forward responsibly amid rapid technological change.
What occurs when a boardroom lags behind a technological advancement that simultaneously transforms economies, industries, and moral standards? Company secretaries are always under pressure to provide accuracy quickly, whether it is by overseeing board packs, monitoring subsidiary compliance, or making sure corporate records are up to date. Governance experts’ handling of these duties is changing as a result of artificial intelligence (AI), which is transforming the days of manual reporting and verification into brief moments of insight-driven action. And failing to engage meaningfully with the ethics of AI risk more than missed opportunities; they risk irrelevance. So how do governance professionals ensure the board is up to par when it comes to AI?
The Importance of Continuous Education on AI Ethics
- Continuous education is vital for good governance, particularly those who are not digital natives. The board chair should play a key role in facilitating this education, ensuring that all members have access to the necessary resources and training.
- The governance and legal teams should demonstrate curiosity, acknowledging their knowledge gaps and actively seeking to learn more. This can be achieved through workshops, seminars, and bringing in external experts to provide insights and training.
- Conducting a skills matrix analysis can help identify areas where new members with relevant expertise are needed to enhance the board’s capabilities. This ensures that the board has a well-rounded set of skills to address the complexities of AI governance.
- Company secretaries and GC should act as strategic advisors, keeping the board educated on possible oversights and illuminating risks.
Proactive Oversight
- Boards should actively engage in overseeing AI adoption by asking management about the significant risks and opportunities associated with new technological developments. This proactive approach ensures that AI initiatives are aligned with the organization’s strategic goals and that potential issues are identified and addressed early.
- It is essential to have a high-level C-suite or executive person responsible for AI oversight, who is part of the executive team. A good fit for this role could be a company secretary, for example, as they provide crucial governance, compliance, and strategic planning to the board and executive management. This individual can ensure that AI governance is prioritized and that the board receives timely and accurate information.
Integration of AI Ethics into Governance Structures
- AI governance should be integrated into the existing organizational structures through a whole-of-board approach. This means recognizing the significant and potentially existential impact of AI on the business and society.
- While risk and audit committees can be a starting point, AI oversight should not be confined to these committees alone. Forming a standalone committee focused on AI and other exponential technologies can provide more specialized and effective oversight.
- Integrating oversight of AI ethics into the broader governance framework ensures that all executive team members are attentive to AI-related issues and can contribute to strategic discussions. This holistic approach helps in making well-informed and balanced decisions.
Skills Matrix Analysis
- AI and other exponential technologies present both significant opportunities and potential existential risks. Boards must be vigilant in identifying and mitigating these risks while also exploring the strategic advantages that AI can offer.
- Recognizing the existential impact of AI involves understanding how it can fundamentally change the business model, market dynamics, and societal norms. This recognition should drive a proactive and comprehensive approach to AI governance.
- Balancing risks and opportunities requires a nuanced understanding of the technology and its implications. Boards should ensure that the organization has robust risk management frameworks in place while also fostering innovation and strategic use of AI.
Effective governance of AI ethics is a multifaceted and dynamic process. By adopting a proactive and comprehensive approach, continuously educating themselves and integrating AI oversight into existing structures, boards can guide their organizations through the complexities of AI and position them for success in the digital age.