Bloomberg today discusses AI use cases for boards of directors, but it all boils down to this: directors experiment with AI just like employees do. There are so many efficiencies and insights to be had from AI adoption, the most innovative boards, management teams and advisors are finding creative AI solutions to existing procedural problems and decision-making processes.
Still, rarely is their training or policies on guardrails in AI usage and instruction on risk mitigation. The article references a Board Practices Quarterly report that "only 13% of companies have an AI policy or code of conduct. Around one-third don’t have the protocol and another one-third are currently considering enacting it. The report also shows that only 9% have revised corporate policies to include privacy, cyber, risk management, and record retention. About one-third haven’t revised yet, but 42% of companies said they are considering a change." It is unsurprising that, despite many company's focus on the risk of AI adoption, there is often little action by those same companies on educating their boards, management and workforce on related AI risks.
AI can be a major time saver and insight generator to aid in board oversight and decision-making. Early adoption is not without risk, but well-advised augmentation can lead to meaningful differentiation.
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