This article discusses the importance of boards of directors being prepared for the emergence of generative AI, a new and rapidly evolving technology. The author suggests that boards should take five key steps:
- Increase literacy about generative AI: Boards should educate themselves on the capabilities, risks, and potential applications of this technology.
- Focus on governance: Establish controls to guide the ethical and trustworthy use of generative AI within their organizations.
- Seek professional experience: Consider adding experienced professionals with expertise in AI to the board or establishing subcommittees focused on AI-related issues.
- Develop a vision for the future: Boards should think critically about how generative AI will impact their organization’s strategy, operations, and risk profile.
- Guide the organization as generative AI matures: Use frameworks like Deloitte’s TrustworthyAITM to assess risk and trust in AI deployments and guide the business toward responsible use.
The article emphasizes that risk management will always be a moving target, but with these steps, boards can position their organizations for success in this new era of AI.
