Harnessing generative AI responsibly: Five essential steps for leaders
2 mins
Published by: Alina Chernomorets
16 February 2024, 11:30AM
AI, particularly generative AI, is increasingly influencing business operations and strategies, presenting both opportunities and complex challenges for future work and life scenarios.
There's an urgent need for board members of organizations to become more knowledgeable about AI to effectively oversee risks and governance, as the applications and risks associated with AI technologies expand.
AI poses unique risks, including security vulnerabilities that could expose sensitive data, potential compliance issues due to biased outputs, and the broader societal impact of irresponsible AI deployment, all of which demand board-level attention.
The advent of generative AI technologies like LLMs, image and audio generators, and code-writing assistants has opened new possibilities for innovation and productivity, while also amplifying existing AI risks and creating new ones.
As generative AI capabilities advance rapidly, boards must quickly develop strategies for AI risk mitigation to prepare for the future impacts of these technologies on organizations.
Today, AI is a hot topic for leaders in businesses and startups, sparking debates about the future of work and life. Generative AI is at the forefront, pushing the boundaries of what's possible with technology and raising important ethical questions.
It's crucial for company boards to focus on managing AI-related risks and ensure they're up to date with AI knowledge. However, many organizations find it challenging to equip their leaders with the necessary understanding of AI.
The need to educate board members about AI is becoming more urgent. Over recent years, the applications and risks associated with AI have significantly increased. This has introduced new challenges in governance and risk management for boards. According to a Deloitte survey, most boards are already taking steps to oversee these risks, but AI requires the same level of attention and investment as other business risks.
AI presents various risks, including security threats that could expose sensitive data and biases in AI outputs that could lead to compliance issues. The careless use of AI systems can negatively impact businesses, consumers, and society. These issues underscore the need for board members to actively engage in mitigating AI risks.
The emergence of generative AI adds complexity to the challenge of managing AI risks. Its impressive capabilities have led to innovative applications that can enhance productivity, uncover new insights, and drive revenue growth. With the barriers to using AI falling and its capabilities expanding, addressing risk management becomes even more critical.
Generative AI not only increases existing risks but also accelerates the need for strategies to mitigate these risks. As generative AI continues to evolve, the urgency for boards to become knowledgeable about these technologies and their impact on risk management grows.
In summary, board members need to quickly become more informed about generative AI and its implications to effectively prepare their organizations for the future shaped by these advanced technologies.
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