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?? Emerging AI Risk For Board Meetings The integration of artificial intelligence (AI) into corporate governance, particularly through AI-powered note-taking tools, offers significant efficiency benefits. However, it also introduces substantial risks that boards must address to maintain confidentiality, privilege, and trust. Key Risks Associated with AI Note-Taking Tools ?? Confidentiality Breaches: AI tools often utilise cloud-based platforms for data processing, which can inadvertently expose sensitive boardroom discussions to unauthorised access or data breaches. ?? Privilege Erosion: The use of AI in documenting privileged communications may inadvertently waive legal privileges, potentially exposing the organisation to legal vulnerabilities. ?? Data Security Concerns: Storing transcriptions and summaries on external servers increases the risk of cyber threats, including hacking and data leaks. Mitigation Strategies for Boards To effectively balance the advantages of AI tools with the imperative of maintaining governance integrity, boards should consider the following actions: ??? Conduct Comprehensive Risk Assessments: Before adopting AI note-taking tools, evaluate potential risks to confidentiality, privilege, and data security. ??? Implement Robust Data Security Measures: Ensure that AI tools comply with stringent data protection standards, including end-to-end encryption and secure data storage solutions. ??? Establish Clear Usage Policies: Develop and enforce policies that delineate appropriate scenarios for AI tool utilisation, explicitly excluding sensitive or privileged discussions. ??? Provide Targeted Training for Board Members: Offer training sessions to educate directors on the risks associated with AI tools and best practices for their secure use. ??? Monitor and Review AI Tool Usage Regularly: Continuously assess the deployment of AI tools to ensure they remain appropriate and secure, adapting to technological advancements and evolving regulatory landscapes. ?? To deep dive more on this and key emerging operational risks, subscribe to the RiskSpotlight Portal at https://lnkd.in/e34DV-6s. #riskspotlight #operationalrisk #operationalriskmanagement #emergingrisk #GRC #ERM #AIRisk #AI #Board

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