We can safely defer the discussion about whether artificial intelligence will eventually take over board functions. We cannot, however, defer the discussion about how boards will oversee AI — a discussion that’s relevant whether organizations are developing AI systems or buying AI-powered software. With the technology in increasingly widespread use, it’s time for every board to develop a proactive approach for overseeing how AI operates within the context of an organization’s overall mission and risk management.
According to McKinsey’s 2019 global AI survey, although AI adoption is increasing rapidly, overseeing and mitigating its risks remain unresolved and urgent tasks: Just 41% of respondents said that their organizations “comprehensively identify and prioritize” the risks associated with AI deployment.
Board members recognize that this task is on their agendas: According to the 2019 National Association of Corporate Directors (NACD) Blue Ribbon Commission report, Fit for the Future: An Urgent Imperative for Board Leadership, 86% of board members “fully expect to deepen their engagement with management on new drivers of growth and risk in the next five years."