Large public company audit committee chairs shared their views and practices on the implementation and use of AI in the business and board / committee involvement and oversight, which are nicely summarized in this new Tapestry Networks / EY report: “Artificial intelligence and the board: what audit committees need to know.”
Among the many key takeaways:
- Apply the use of AI strategically to add value based on a defined need and with the proper (and well-diligenced) tools and sound data practices, including good governance and employee training.
- As the use of AI becomes the norm and increasingly viewed as an enabler of value and competitive advantage rather than just a means to greater efficiencies, boards need to understand the risks and risk mitigation tactics associated with various AI tools and uses.
- AI supplements, but is not a substitute for, human judgment, and requires active oversight, which warrants a review of director oversight skills/expertise and the board oversight structure, as well as proactive dialogue between/among directors and the appropriate members of management.
- Companies should create a safe space for experimentation of AI’s potential. AI laggards will put their companies at a competitive disadvantage.