How to Use AI in the Boardroom for Better Decisions

A guide for board members who want to leverage AI tools to enhance their efficiency, effectiveness, and governance in the board room.

Why AI in the Boardroom?

AI is not only a strategic topic for boards to oversee, but also a powerful tool for boards to use.

AI can help board members to process large amounts of information, gain insights, ask questions, and explore scenarios.

AI can also help board members to apply different perspectives, such as finance, marketing, HR, or legal, to the board papers and issues. AI can thus enable board members to make better decisions, faster and more confidently.

How to Use AI in the Boardroom?

There are many use cases for AI in the boardroom, depending on the needs and preferences of the board members. Here are some examples:

• Summarising board papers: AI can help board members to quickly grasp the main points and highlights of the board papers, without having to read them in full. AI can also generate summaries of different lengths and levels of detail, depending on the board members' preferences.

"Summarise this document on the webpage [or upload document]"

Upload the document onto AI with commerical data protection. "I am a board member and I am going to ask you some questions about this document" Then ask away!

• Understanding board papers by asking questions: AI can help board members to clarify any doubts or gaps in their understanding of the board papers, by allowing them to ask natural language questions and get relevant answers. AI can also suggest questions that board members might want to ask, based on the content and context of the board papers.

"Explain this document in 3 sentences"

"List the Pros and the Cons of the cyber security strategy"

"Based on the content of the document, what are some key questions a board member might ask to understand the risk"

• Putting a different perspective over board paper content: AI can help board members to view the board papers from different angles, such as finance, marketing, HR, or legal, by generating reports, analyses, or recommendations that reflect those perspectives. AI can also help board members to compare and contrast different perspectives, and identify any trade-offs or synergies.

" What arguments does this document take?"

"From a human resources perspective, what are some key considerations?"

• In depth analysis: by asking what decisions haven't been made, or ask what other scenarios could have been considered: AI can help board members to challenge the assumptions and conclusions of the board papers, by generating alternative hypotheses, scenarios, or outcomes. AI can also help board members to evaluate the implications and risks of different options, and test the robustness and sensitivity of the board papers.

"Based on the document, what are 3 different scenarios that thave not been considered"

"What decisions have been made and have not been made by the executive team on this issue?"

• Legal considerations. If you are largely using the outcome of AI to make decisions, consult legal experts to ensure compliance with relevant laws and regulations. Consider ethical implications, such as the impact of AI on employment and decision-making processes.

"Are there any legal considerations we have not thought about that might be relevant here?"

"What is the impact on privacy, of the recommended approach."

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How to Use AI Safely in the Boardroom?

AI can be a powerful ally for board members, but it also comes with some risks and responsibilities.

Board members need to be aware of the limitations and biases of AI, and use it with caution and care. Here are some tips for using AI safely in the boardroom:

• Use AI with at least commercial data protections, ideally enterprise data protections, e.g. your interactions with the AI does not train the AI model, information stays where it should: Board members should ensure that the AI tools they use are compliant with the data protection and privacy laws and regulations, and that they do not expose or compromise the confidential or sensitive information of the board or the organisation.
• Never use free-ware - as it's free for a reason. Board members should avoid using free or unverified AI tools, as they may not have adequate security or quality standards, and they may use the data for other purposes or share it with third parties.
• Ask the organisation you serve if there is an AI they would prefer you use. Board members should consult with their organisation and follow its policies and guidelines on the use of AI tools, and seek its approval or recommendation before using any AI tools.
• Don’t rely on AI-generated responses and content without first sanity checking or peer reviewing the response for reasonableness, and accuracy: Board members should not blindly trust or accept the outputs of AI tools, but rather verify and validate them with their own judgment and expertise, and with the input of other board members or experts.
• Review any AI License Agreement or Terms of Use: Board members should read and understand the terms and conditions of the AI tools they use, and respect their obligations and limitations, and avoid any misuse or abuse of the AI tools.
• Treat AI-generated predictions with scepticism (e.g. financial forecast data or behavioural risk scores) – they're indicative, not absolute fact: Board members should recognise that the predictions and forecasts of AI tools are based on probabilities and assumptions, and that they may not reflect the reality or the future. Board members should use them as inputs, not outputs, for their decision-making.
• Select systems that allow the business to retain ownership and control of the organisation’s data and intellectual property if it will have access to sensitive or proprietary information: Board members should ensure that the AI tools they use do not infringe or jeopardise the intellectual property rights or interests of the board or the organisation, and that they do not lose or transfer the ownership or control of their data or insights.
• Board members should anticipate the potential changes in the legal, regulatory or ethical landscape that may affect the use of AI tools, and monitor the developments and trends in this area. Board members should also seek to use AI tools that are modular, scalable and interoperable, and that can be modified or terminated without causing significant disruption or loss to the board or the organisation.
• Training and awareness: Board members should train themselves on using AI tools effectively and securely. And do a level of Responsible AI training so that they know how to better govern as well as use AI tools.

Remember that the adoption of AI for board papers should align with the organisation’s overall risk appetite and strategic goals.?

?It's essential to strike a balance between efficiency gains and safeguarding critical information.

If you have any specific questions or need further details, feel free to ask!?

In this episode, I speak to Matt Bain, Marketing and AI Director at Spark, where we'll get into how AI is reshaping marketing, and what's next on the tech horizon.

We dive into real stories about implementing AI at Spark and peeking into the future of tech. Join us for some genuine insights and forward-thinking ideas from an organisation who is a fast mover in AI.

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