"AI" OnBoard

Fourth of July 2023 marks 247 years since the Declaration of Independence, adopted by the Continental Congress on July 4, 1776. The US Independence Day. ????

***Happy Birthday America***

The currently famous but not so new candidate-technology who’s aboard with all of us: “Generative A.I.” has been marking its several birthdays already! It may sometimes feel like #AI is a recent development in technology. After all, it’s only become mainstream to use in the last several years, last few months -- right? In reality, the groundwork for AI began in the early 1900s. And although the biggest strides weren’t made until the 1950s, it wouldn’t have been possible without the work of early experts in many different fields.?

Knowing the history of #artificialintelligencetechnology is important in understanding where AI is now and where it may go/take us in the future. https://sitn.hms.harvard.edu/flash/2017/history-artificial-intelligence/ [Al history source by Harvard University]

? Takeaway's from my continued global markets research and executive-intelligence leading the charge:

? The question of whether this is just an interesting new piece of technology or a game changer for business has already been answered:?it’s a game changer!

? Although widely termed as Artificial Intelligence (AI), to me personally (and I agree with others with similar mindset) – it is actually AI: Augmented Intelligence – because it is!

? A sneak peek: Generative A.I. is rapidly finding a large foothold in large and small enterprises at present. Only to take us into a futuristic world of Super AI or ASI, i.e. Artificial Super Intelligence.

? Corporate leaders think that A.I. could eventually have significantly major applications in many areas. It’s time for leaders to embrace and adapt, adapt and embrace towards this iterative and futuristic journey of the human plus machine interface.

? The benefits of artificial intelligence go well beyond improved efficiency and decision-making. AI can also improve organizational effectiveness and strengthen teams and enterprise cultures.

The contemporary global landscape presents a multitude of complex challenges for Boards across industries. As the world becomes more interconnected, businesses are subject to a wide range of variables. It's important for Boards to address these challenges with an adaptive and forward-thinking strategy.

In these challenging times, Boards need to be proactive, adaptable, and resilient, able to anticipate and respond to change. By doing so, they can steer their organizations towards a sustainable and successful future.

? In the context: let’s explore the current Generative AI landscape, its business implications and leadership aspects.

Artificial intelligence (AI) is rapidly changing the way businesses operate. As AI becomes more sophisticated, it is becoming increasingly important for corporate boards to develop a strategy for how to use AI to their advantage.

One way to think about AI strategy is to consider the four pillars of responsible AI:

• Ethics
• Transparency
• Accountability
• Safety (includes cybersecurity)

One of the key challenges for corporate boards is “developing an AI strategy” that aligns with the company's overall business goals. This strategy should address the following questions:

• What are the specific areas where AI can be used to improve the company's operations?
• What are the ethical and legal risks associated with using AI?
• How will the company ensure that AI is used in a responsible and transparent way?

In addition to these four pillars, corporate boards should also consider the following factors when developing an AI strategy:

• The potential benefits of AI: What are the potential benefits of using AI for the company? How can AI help the company to improve its efficiency, productivity, and profitability?
• The potential risks of AI: What are the potential risks of using AI for the company? How can AI be used to harm the company or its customers?
• The availability of data: What data is available to train AI models? How can the company collect and store data in a way that is secure and compliant with privacy regulations?
• Algorithmic bias: AI algorithms can be biased, which can lead to unfair or discriminatory outcomes. This is a particular concern in the context of cybersecurity.
• Explainability: It can be difficult to explain how AI algorithms work, which can make it difficult to trust these algorithms and to hold them accountable for their decisions. This is a critical challenge that needs to be addressed in order to ensure the safe and responsible use of AI.
• The skills and expertise of the workforce: Does the company have the skills and expertise to develop and deploy AI solutions? If not, how can the company acquire those skills and expertise?

? Here’s a glimpse of the artificial intelligence strategy of corporate boards case study and data analytics.

Case study:

Let's take the example of Alphabet Inc. , the parent company of 谷歌 . Alphabet's board of directors has a dedicated committee on artificial intelligence, which is responsible for overseeing the company's AI strategy. The committee meets regularly to discuss the latest developments in AI, and to ensure that Alphabet is using AI in a responsible and ethical way.

In 2020, the AI committee published a report on Alphabet's AI principles. The report outlines the company's commitment to using AI in a way that is beneficial to society, and that respects human rights. The report also includes a number of specific commitments, such as:

• Using AI to improve people's lives
• Making AI more transparent and accountable
• Preventing AI from being used for harmful purposes

A case study that illustrates the importance of an AI strategy for corporate boards is the recent controversy surrounding 亚马逊 facial recognition technology. Amazon's Rekognition system was found to be biased against people of color, and the company was criticized for its lack of transparency about how the system worked. This controversy led 亚马逊 to suspend the sale of Rekognition to law enforcement agencies.

This case study highlights the importance of corporate boards having a clear understanding of the risks associated with AI, and of having a governance framework in place to manage those risks. If Amazon had had a more robust AI strategy, it is possible that the Rekognition controversy could have been avoided.

Data analytics:

In addition to the case study, we can also use data analytics to gain insights into the artificial intelligence strategy of corporate boards. For example, we can look at the number of companies that have dedicated AI committees, or the number of companies that have published AI principles. We can also look at the types of AI projects that companies are working on, and the ways in which they are using AI to improve their businesses.

A recent study by the IBM Institute for Business Value found that 70% of companies have an AI strategy, and that 60% of companies have a dedicated AI committee. The study also found that the most common uses for AI are in the areas of customer service, fraud detection, and product development.

Generative artificial intelligence is poised to unleash the next wave of productivity. 麦肯锡 research estimates the potential value of GenAI on specific business functions and additional worker productivity is $6.1 trillion to $7.9 trillion. Companies should prepare now to capture its benefits and mitigate its risks.?

These data analytics insights suggest that corporate boards are increasingly taking AI seriously, and that they are committed to using AI in a responsible and ethical way.?

? Once a corporate board has developed an AI strategy, it is important to implement a governance framework that will help to ensure that the strategy is implemented effectively. This framework should include the following elements:

• A clear definition of the roles and responsibilities of the board and management in relation to AI
• A set of policies and procedures for managing the risks associated with AI
• A process for monitoring and evaluating the performance of AI-based systems

? AI Framework for Board Governance: Enabling Efficient, Effective and Ethical Corporate Leadership

1. Executive Summary

The surge in technological advancements over the past decade has culminated in a new era of corporate governance, with Artificial Intelligence (AI) at its forefront. Here’s a comprehensive AI Framework for Board Governance. By harnessing AI's potential, organizations can make their decision-making processes more efficient, their strategies more effective, and their board operations more ethical.

2. Introduction

The rise of AI has permeated across all sectors, including corporate governance. Utilizing AI in corporate boardrooms can transform governance protocols, improving oversight, streamlining decision-making, and enhancing strategic planning.

Machine Learning (#ML ), Natural Language Processing (#NLP ), and predictive analytics have transformed governance processes, streamlining operations, enhancing transparency, and facilitating better decision-making.

However, the successful integration of AI in #corporategovernance is not without challenges. Concerns regarding #transparency , #bias , and #ethics arise, necessitating an AI Framework that encompasses robust guidelines and principles for its responsible use.

3. The Proposed AI Framework for Board Governance

This framework focuses on three main areas:

A. Efficiency: Leveraging AI to optimize operations, minimize redundancy, and increase speed in decision-making.

B. Effectiveness: Utilizing AI's analytical capabilities to enhance strategic decision-making and risk management.

C. Ethics: Ensuring the responsible use of AI, safeguarding transparency, fairness, and privacy.

3.1 Efficiency

3.1.1 Automated Processing

AI can automate various tasks such as data collection, aggregation, (performance) analysis, and report generation, providing timely, concise, and actionable insights for the board members.

3.1.2 Predictive Analytics

Predictive analytics tools enable board members to anticipate potential future outcomes, facilitating proactive decision-making and strategic planning.

3.2 Effectiveness

3.2.1 Enhanced Decision-making

AI tools can analyze vast data sets to offer in-depth insights and trend analyses, supporting informed decision-making.

3.2.2 Risk Management

AI's predictive capabilities can help identify potential risks or threats to the organization, enabling the board to devise effective contingency plans.

3.3 Ethics

3.3.1 Transparency

AI algorithms should be designed and used in a way that their functioning and decision-making processes can be understood by board members.

3.3.2 Fairness

AI should be utilized in a manner that avoids bias and promotes fairness in decision-making.

3.3.3 Privacy and Security

The AI systems should adhere to the highest standards of data privacy and security, fraud-detection ensuring the protection of sensitive corporate information.

4. Implementation Guidelines

Implementing this AI framework will require:

? Technological Infrastructure: Building or adapting the existing infrastructure to accommodate the AI tools.

? Training and Education: Enhancing board members' understanding of AI, its functionalities, and implications.

? Regulatory Compliance: Ensuring AI integration complies with all relevant legal and regulatory guidelines.

5. Conclusion

The proposed AI Framework for Board Governance presents a structured approach to integrating AI in corporate governance. By focusing on enhancing efficiency, effectiveness, and ensuring ethical usage, AI can revolutionize the boardroom, supporting organizations in their journey towards digital transformation and sustainable growth.

However, it is crucial to note that the AI Framework should be customized based on an organization’s unique requirements and capabilities. The goal should always be to leverage AI as a tool to enhance human decision-making capabilities, rather than to replace them.

6. References

This framework is only a starting point and should be complemented with further research. Sources of reliable information include academic articles, industry studies, and case studies.

The careful selection of AI vendors who uphold best practices in ethical AI use is also strongly advised.

7. Acknowledgements

I express my gratitude to the tech-entrepreneurs, founders, board members, IT professionals, #SaaS platforms, and legal advisors who have provided insights for this AI governance framework.

Your knowledge and experience have been instrumental in shaping this AI Framework for Board Governance!

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https://www.dhirubhai.net/newsletters/boards-of-wisdom-7026398787480768512/

Co-creation of value and thoughts are welcome.

Thank you!

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