EDITORIAL: AI AND THE BOARD
September 2023 Edition - Written by Lesley Stephenson
The latest McKinsey annual global survey confirms the explosive growth in the use of generative AI. Less than a year after many of these tools debuted, a third of their survey respondents say their organisations use generative AI in at least one business function.
When setting out their mid-year observations on issues high on the boardroom agenda, KPMG identified generative AI as a key issue - it is being discussed in most UK boardrooms as companies and their boards seek to understand the opportunities and associated risks of the new technology.
The three recurring themes they found were:
The need for board education so that all directors have a basic understanding of generative AI, the potential benefits and risks it provides and how the business might use the technology.
The importance of establishing and updating governance structures and policies regarding the use of the technology by the company and by individual employees.
The need to reassess the business’ governance structure for the oversight of generative AI by the board and committees.
KPMG found that there is not a single committee with responsibility for oversight of generative AI; given its strategic importance, it is seen as more of an issue for the whole board, so all board members must have an understanding of the relevant considerations.