The Cost of Ignoring AI Governance: Here's Why You Need a Board Now

An AI Governance Board can do wonders for your organization in terms of ensuring responsible and effective development and use of AI. Here's why you need to set one up quickly.

Reduced Risks: Gartner studies indicate that by 2025, 80% of AI projects are doomed to fail because of ethical, legal, or societal reasons. This can be mitigated by the AI Governance Board, which ensures:

1. Identification and mitigation of potential biases in AI algorithms that make unfair or discriminated decisions. (e.g. in loan approvals)
2. Compliance with data privacy regulations, such as GDPR or CCPA, driving the avoidance of high fines. (e.g. potential fine by GDPR of up to 20M €)
3. Abidance by AI security practices in order to avoid vulnerabilities and potential cyberattacks. (e.g. the average cost of a data breach in the US in 2023 was $9.44 million)

Better ROI: Proper AI development leads to high functioning models. Recently, McKinsey reported that superior AI performers achieve a 20% return on AI project investment.

Reputation: Build confidence with clients, partners, and investors through transparent and responsible AI practices to consequentially brand your name and outshine in competitive markets.

Now, what is the AI Governance Board? An AI governance board is a body within an organization that provides oversight into the development and use of artificial intelligence.

1. Setting the Scene for developing Responsible AI: Ensuring that AI is developed and used in an ethical, responsible manner and according to regulations.
2. Risk Management: They identify and mitigate potential risks associated with AI, from bias, to privacy, and security hazards.
3. Decision-Making Framework: Develop a framework to make decisions in all AI projects, considering factors of impact, resources, and ethical considerations.
4. Transparency and Oversight: Ensure transparency in the development and use of AI to instill trust and responsibility across the organization.

?Although the specific structure and responsibilities of the AI governance board may vary, the board will be empowered to ensure the use of AI for good and help temper some of the negative effects.