Preparing the Board of Directors to manage risk and opportunity in AI

- I work with a lot of board directors, and they're having trouble sleeping right now because I can tell you, even the smartest AI can't possibly predict all the ethical dilemmas that might arise from these new technologies, and yet it's the board's job to make sure that organizations are prepared, to make sure that new technologies are deployed in the best interests of all stakeholders. Board directors have a legal and an ethical obligation to act in the best interest of an organization and its stakeholders. Board members have different responsibilities from the organization's C-Suite. As you might recall from the previous video, the C-Suite's responsible for the day-to-day operations of the company, making real-time decisions about when and how to use new technologies. For a board of directors to ensure that an organization's use of AI aligns with ethical values and regulatory requirements, they should first make sure that the organization has policies and procedures in place to identify and address ethical concerns that might arise in the use of AI. These policies should be designed to mitigate risks, including bias, privacy, and security, but they should also create opportunities for individuals with ethical concerns to come forward, including directly to the board when and if necessary. The board should make sure that the organization has their resource and the expertise necessary to manage the ethical risk posed by AI effectively. Do you know if there's a board policy on the ethical use of AI at your organization? If not, it may be worth it to find out. Board members also have specific responsibilities and obligations to regulators. They're accountable for ensuring that the organization complies with statutory requirements related to the use of AI as well as monitoring all of the new regulations and understanding the possible impact for the organization. To be effective at these responsibilities, the board of directors should establish a dedicated AI committee to oversee ethical AI practices within the organization. This committee should receive outside advice from experts in the fields of AI, ethics, and law, and should be responsible for providing guidance on issues such as bias, transparency, and accountability. They should, in particular, be available to advise the C-Suite on significant decisions about these matters. The board of directors has a critical role in managing ethical risks within organizations. They must ensure that the organization has appropriate policies and procedures in place to address ethical concerns, but they also have to provide guidance and oversight to the executive team, ensure compliance with regulatory requirements, and they should establish a dedicated committee to oversee ethical AI practices within the organization. By taking these actions, boards of directors can build trust with stakeholders and they can ensure that organizations are focused on the long-term success of their AI efforts.