How can #boards better understand the potential impacts of AI? Although 95 percent of #directors acknowledge #artificialintelligence’s (AI) future significant impact on their businesses, only 28 percent indicate that #ai is a regular feature in their board’s conversations, according to a survey by the NACD (National Association of Corporate Directors) It is imperative that boards assess the opportunities and #risks the #technology presents and establish processes that address AI’s impact on issues ranging from directors’ and officers’ (D&O) insurance to the oversight responsibilities for management’s adoption and implementation of AI. This imperative is created by an imminent rise in government #regulations and disclosure requirements, but it remains fundamentally an opportunity for those boards that can confront and successfully manage the issues AI presents. Directors should be proactive in addressing concerns related to AI. Importantly, companies working with the technology must also stay informed about the rapidly evolving regulatory landscape, as non-compliance can lead to #legal and #financial consequences. By doing so, boards can help ensure AI adoption within their company is both beneficial and safe. In this article by Harvard Business Review the authors suggest six scenarios that all boards must consider, and then act upon, ranging from predicting extreme operational changes, to anticipating new strategic ways to compete, to foreseeing existential threats that could obviate one’s business. #csuite #executivedirectors #culturetransformation #strategytoexecution #nonexecutivedirectors #boardofdirectors #ceos #digitalregulation #regulationandcompliance #digitalinformation #privacyregulation #policy https://lnkd.in/evRGK2Kr
Absolutely crucial, Geoff Hudson-Searle Insightful post!
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6moBoards must have one special advisor around the table who has operational knowledge of AI and its future directions, including all aspects of cybersecurity.