Effectively distinguishing AI from other developments that impact corporate governance based on its transformative potential, in “Directing with AI: Corporate Governance, AI Governance, and the Board,” former SEC Commissioner Troy Paredes outlines considerations relevant to the board’s oversight of the company’s exploration and employment of AI and its use of AI to enhance its oversight duties and responsibilities. Themes include prioritizing and integrating AI into board agendas; long-term, “futuristic” perspective and strategic planning in light of unchartered AI developments; applying Caremark oversight principles to AI-related risks; and using AI to enhance board information, questioning, and monitoring.
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This post first appeared in the weekly Society Alert!