AI Presents Strategic Risks and Opportunities Requiring Increased Board Oversight, New Report Finds

AI can disrupt industries and presents strategic opportunities and risks requiring board oversight of corporate strategy, risk, stakeholder impacts, legal compliance, ethics, and governance.

Boards should understand how AI is used in the company and industry; assess strategic opportunities and risks; and oversee policies, controls, and compliance.

Boards should consider AI's impact on employees, customers, stakeholders, and environment and mitigate unintended consequences.

Boards should oversee compliance with laws and regulations related to AI and development of policies, systems, and controls.

Board oversight includes understanding AI uses, opportunities, and risks; establishing reporting and metrics; and regularly reviewing policies, procedures, risks, and mitigation.