An organisation is only as prepared as its governance professionals, meaning that it’s time to get clued up on the ethics of AI. With this technology growing, legal and governance professionals cannot afford to scramble to catch up, and have to alert the board to the implications of AI.
What happens when a boardroom falls behind the curve of a technology that’s reshaping industries, economies, and ethical boundaries all at once? Between managing board packs, tracking subsidiary compliance, and ensuring CIPC submissions are current, company secretaries face constant pressure to deliver accuracy at speed. Artificial Intelligence (AI) is reshaping how governance professionals handle these responsibilities — turning days of manual reporting and verification into minutes of insight-driven action. And failing to engage meaningfully with the ethics of AI risk more than missed opportunities; they risk irrelevance. So how do governance professionals ensure the board is up to par when it comes to AI?
The Importance of Continuous Education in the Ethics of AI
- Continuous education is vital for good governance, particularly those who are not digital natives. The board chair should play a key role in facilitating this education, ensuring that all members have access to the necessary resources and training.
- The governance and legal teams should demonstrate curiosity, acknowledging their knowledge gaps and actively seeking to learn more. This can be achieved through workshops, seminars, and bringing in external experts to provide insights and training.
- Conducting a skills matrix analysis can help identify areas where new members with relevant expertise are needed to enhance the board’s capabilities. This ensures that the board has a well-rounded set of skills to address the complexities of AI governance.
- Company secretaries and GC should act as strategic advisors, keeping the board educated on possible oversights and illuminating risks.
Proactive Oversight
- Boards should actively engage in overseeing AI adoption by asking management about the significant risks and opportunities associated with new technological developments. This proactive approach ensures that AI initiatives are aligned with the organisation’s strategic goals and that potential issues are identified and addressed early.
- It is essential to have a high-level C-suite or executive person responsible for AI oversight, who is part of the executive team. A good fit for this role could be a company secretary, for example, as they provide crucial governance, compliance, and strategic planning to the board and executive management. This individual can ensure that AI governance is prioritised and that the board receives timely and accurate information.
Integration of the Ethics of AI into Governance Structures
- AI governance should be integrated into the existing organisational structures through a whole-of-board approach. This means recognising the significant and potentially existential impact of AI on the business and society.
- While risk and audit committees can be a starting point, AI oversight should not be confined to these committees alone. Forming a standalone committee focused on AI and other exponential technologies can provide more specialised and effective oversight.
- Integrating oversight of the ethics AI into the broader governance framework ensures that all executive team members are attentive to AI-related issues and can contribute to strategic discussions. This holistic approach helps in making well-informed and balanced decisions.
Skills Matrix Analysis
- Conducting a skills matrix analysis is essential to identify gaps in the governance team’s expertise related to AI. This analysis should assess the current knowledge and skills – and highlight areas where additional expertise is needed.
- In addition, boards should actively seek to bring in new members with relevant knowledge and experience to fill these gaps. This can be done through targeted recruitment or by engaging with external advisors and consultants.
- A well-rounded board with diverse expertise will be better equipped to handle the complexities of AI governance and make informed decisions.
Existential Risks and Opportunities
- AI and other exponential technologies present both significant opportunities and potential existential risks. Boards must be vigilant in identifying and mitigating these risks while also exploring the strategic advantages that AI can offer.
- Recognising the existential impact of AI involves understanding how it can fundamentally change the business model, market dynamics, and societal norms. This recognition should drive a proactive and comprehensive approach to AI governance.
- Balancing risks and opportunities requires a nuanced understanding of the technology and its implications. Boards should ensure that the organisation has robust risk management frameworks in place while also fostering innovation and strategic use of AI.
Effective governance of the ethics of AI is a multifaceted and dynamic process. By adopting a proactive and comprehensive approach, continuously educating themselves and integrating AI oversight into existing structures, boards can guide their organisations through the complexities of AI and position them for success in the digital age.
