This viewpoint highlights the dual nature of artificial intelligence (AI) as both a source of significant opportunities and complex challenges for comapnies. The OECD’s definition of an AI system is cited, emphasizing its capacity to generate outputs like predictions, content, recommendations, or decisions based on the input it receives, which can impact both physical and virtual environments. Many companies are leveraging AI to revamp or invent business models, enhance efficiencies, and improve strategic decision-making, which are essential for staying competitive. Nonetheless, AI introduces risks and challenges that must be understood and managed by company boards and management teams.
The document also discusses the expectations of investors for companies to adeptly manage AI-related challenges while maximizing its benefits. This viewpoint is aiming to foster productive discussions around this rapidly evolving and crucial technology. This initiative involves consulting sources and engaging with members to offer a guide for investors and companies. It provides support for investors to evaluate a company’s use of AI in a manner that is safe, ethical, and sustainable. This includes a series of questions designed for investor-investee dialogues. Furthermore, boards can proactively use this guide to anticipate areas of investor interest and concern, thereby enhancing the robustness of their AI oversight strategies.
The paper could be accessed here.
