“Do’s and Don’ts of Using AI: A Director’s Guide” from Skadden Arps advises directors not to use AI in a manner that may result in the inadvertent disclosure of the company’s confidential information; violation of the company’s contractual obligations, internal policies, or privacy laws; loss of attorney-client privilege; or discoverability of information in litigation or a regulatory enforcement action or inquiry.
In practical terms, subject to defined “closed system” exceptions, this translates to educating directors about the risks of AI and specifically instructing them to not upload board materials to an AI platform or tool or use AI to summarize uploaded board materials that contain information other than publicly available information. Similarly, corporate secretaries and others are advised to refrain from using external AI tools to record board meetings or generate board meeting minutes. The article also addresses the risk of inaccuracies and hallucinations associated with the use of AI.
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This post first appeared in the weekly Society Alert!