Artificial intelligence (AI) has evolved drastically and has taken the center stage in a variety of businesses. Various companies have now started understanding the importance of AI. So, the board of directors should take into consideration the responsibility that comes while using AI in mission-critical applications.
What should you consider while using AI?
Human decision making depends on factors like how and what they have been taught, and who taught them. Since AI mimics human actions, it becomes important to train the AI systems accurately. The training and performance of AI are based on datasets that are fed into its algorithms. Through these datasets, the AI learns and arrives at conclusions. Hence, if datasets & training are inaccurate, the results would also be inaccurate.
Thus, ensuring accurate, ethical and unbiased results from AI is the responsibility of the board of directors. They will be responsible for the quality of training and datasets provided. Since AI is developing at an unchecked pace, the board should define a set of rules governing the risks and opportunities associated with it.
Since embedding AI with legacy systems is necessary, the board should keep the following in mind while making AI-related decisions:
- Future business strategy – AI impacts every part of the business viz., customers, employees, operations & competition. So, the board should analyze the risks and opportunities associated with AI and have a strategic approach for the overall decision-making process. How competitors implement AI should also be considered while deciding the future strategies.
- Work Culture – AI changes the way people will work. Employees are hesitant in adapting to the new work culture that AI will bring. Roles like data entry operator or data analyst might disappear & new roles of AI systems maintenance will be introduced. The board has to see that the working culture of the organization remains unaffected after the introduction of AI. A change management program should be introduced to effectively to handle such problems.
- Audit Controls – Reports and controls are greatly enhanced when AI is embedded in the organizational processes. Traditionally sampling methods were used as examining every transaction was not viable. But, with AI, each transaction can be examined and accurate results can be obtained. This means the board has to focus more on how the AI system is designed to obtain accurate decisions.
- Risks – With a wide range of benefits and opportunities, AI also comes with a high-risk factor. The risks vary from data security threats to reputational, legal & ethical. The board should analyze, document and plan a strategy to mitigate such risks if they arise.
- Ethics and Governance –The results of AI are data-based. But sometimes it is also important to make ethical decisions. So, the board’s governance committee should oversee that the code of conduct, mission, and vision of the organization are being implemented in AI as ethical guidelines.
Through AI, organizations can reach great heights in terms of performance and efficiency. But along with huge potential benefits, AI also has its own risks. Implementing AI without assessing its risks can be devastating. The board of directors should assess and understand the risks & opportunities that AI offers before its organization-wide implementation.