In mid-April, KPMG, in collaboration with INSEAD, released a principles-based framework for board oversight of AI: “AI Governance Principles for Boards.” Drawing on practical insights from board members, investors, and governance specialists worldwide, the five principles cover:
- Strategic oversight for long term value creation — overseeing AI strategy in an environment characterized by rapid development, experimentation, and uncertainty.
- Active technology and security oversight — balancing considerations such as technology sovereignty, cyber-, data-, and AI security with the agility, speed, and scale benefits of partnering or outsourcing.
- Workforce transformation and human accountability — balancing productivity gains with effective, forward-looking workforce and talent management, while preserving human judgment and accountability in decision-making.
- Building trustworthy AI — adopting standards for trustworthy AI that reflect the company’s values, regulatory obligations, and stakeholder expectations.
- The work of the board — considering how AI affects the board’s own capabilities, oversight processes, and governance structures, and addressing AI-tailored risk management, the regulatory landscape, management reporting, and external communications.
The principles join other recent frameworks on board oversight of AI, including the NACD’s “4-Pillar Framework for board AI oversight,” which we reported on here, and the OCEG’s “The Essential Guide to AI Governance.”
This post first appeared in the weekly Society Alert!