AI is in the minds of nearly every business leader and startup today, challenging decision-makers with a constant stream of “what if” scenarios about how we’ll work and live in the future. Generative AI, in particular, is redefining what business can do with artificial intelligence—and presents thorny questions about which business must I am doing.
Managing risks and ensuring effective oversight of AI should become a focus for boards, yet many organizations can struggle when it comes to helping their top leaders become smarter about AI.
The urgent need for training of board members is increasing. Over the past decade, use cases for machine learning and other types of artificial intelligence have proliferated. So you have the risks. For boards, the age of artificial intelligence has exposed new challenges in terms of governance and risk management. Recent Deloitte research found that most boards (72%) have at least one committee responsible for risk oversight and more than 80% have at least one risk management expert. Despite the attention and investment in managing other types of business risk, AI requires the same treatment.
The dangers of artificial intelligence are many. AI security risks, for example, can compromise sensitive data. Biased results can create compliance problems. Irresponsible development of AI systems can have significant implications for business, consumers and society at large. All of these potential implications should worry board members — and prompt them to play a greater role in helping their organizations address AI risks.
A growing sense of urgency
Irresponsible development of AI systems can have significant implications for business, consumers and society at large.
The rise of genetic artificial intelligence makes the AI risk challenge even more complex and urgent. Its capabilities have amazed users and opened the door to transformative use cases. Generative AI, including large language models (LLMs), image and audio generators, and code writing assistants, provides more users with tools that can boost productivity, generate previously overlooked insights, and create opportunities to grow revenue. And almost anyone can use these tools. You don’t need a PhD in data science to use an LLM-backed chatbot trained in enterprise data. And because the barriers to using AI are collapsing rapidly, at the same time that the capabilities of AI are growing rapidly, there is a huge amount of work to be done in terms of risk management.
Not only does genetic AI amplify the risks associated with AI, but it also shortens the timeline for developing strategies that support AI risk mitigation. Today’s risks are real and will only increase as genetic AI matures and adoption increases. Boards are running out of time to learn more about genetic AI and how it will impact risk management. The following five steps can help board members prepare their organizations for a future shaped by genetic artificial intelligence.
