AI In The Boardroom: A Governance Framework For Harnessing The Power Of AI

Introduction

Most Boards are now grappling with AI as a matter of enterprise risk and strategy. AI poses risks and opportunities that will differ between company and industry, all of which require understanding and engagement from the Board.

Boards have also turned their attention to a related but different question: whether and how AI should be used in the Boardroom. The proliferation of generative AI tools and genuine potential benefits has made sure of this. For example, questions are being asked as to whether it is appropriate to use AI in the preparation of Board papers, the analysis of those Board papers, the conduct of the meeting, and in preparing minutes. There are questions around the over-reliance on AI and the impact that this might have in the long term. For example, if a Director uses AI to review and propose questions on Board papers first, prior to their own review, does this encourage an over-reliance on AI? Are Directors at risk of substituting their own