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If technology is always ahead of regulations, what hope do governments have in coming up with comprehensive guidelines for something as fast moving as AI? That’s why, says Lex Suvanto, CEO of Edelman Smithfield, it is fundamental for boards to understand the ethical considerations of AI specifically for their company and then develop proper oversight guidelines. The cases of AI gone bad — many already documented, even litigated — pose real risks for companies and potentially directors themselves; however, these risks can be reduced if boards and companies educate themselves on the realities of AI, raise the floor on compliance, agree on leading practices and develop AI strategies tailored to their business.
A good sign that people start trusting new technology is when they stop talking about it, noted one of the session panelists. However, getting there may take time because our curiosity about AI is different from other complex systems — mostly because it’s new, but also because it’s on the trajectory toward autonomous decision-making.
That is precisely why boards should abandon old-fashioned planning and embrace “future mapping,” says Minsoo Pak, EY Americas Innovation Realized Leader. Pak, along with Mike Kanazawa, EY Global Innovation Realized Leader, tested this approach by conducting a live interactive exercise. Working together in breakout groups, board directors and business leaders mapped direct and indirect outcomes of future scenarios involving renewable energy, digital innovation, e-mobility, automation and other industry trends. The aim of the exercise, Pak explained, was not to solve immediate problems but to identify second, third and even fourth level implications of disruptive technologies — including those that don’t yet exist — and feed them back to present decision-making. This exercise is a great scenario-planning approach helping directors prompt new ways of identifying opportunities and also risks.
Longtime board leaders Mark Weinberger and Glenn Hubbard, who have successfully navigated through their own share of disruptions caused by booms and busts, energy crises, the COVID-19 pandemic and geopolitical rifts, talked about their experiences. In these cases — and now with the rapidly changing landscape of AI — disruption, when properly managed, can become a multiplier for commerce and product innovation. Boards that remain focused on good governance will help their companies succeed and bring a renewed sense of dynamism to global markets.
There is a growing consensus among board leaders: we are at the precipice of an AI-powered future. The technology is still in its most nascent form, bringing with it a complex set of challenges. But it is here, it isn’t going away and, chances are, your competitors are already using it to grow their business. For boards, walking the talk of AI means embracing it, with curiosity and care, changing governance approaches to leverage it, and always asking better questions.