AI in the Boardroom: 10 Questions … and Answers

Board Perspectives — Issue 196

AI governance is one of the most complex and significant issues for boards and executive teams today, with discussions varying depending on the organization's AI deployments and governance maturity. These conversations often center on ROI and responsible deployment. Following are 10 questions we hear raised frequently:

1. Why is the AI buildout taking so long, and how will we know when it is finished?
2. What does ‘effective AI governance’ look like in practice, including ownership, decision rights, accountability across management, risk, compliance and internal audit, and the awareness needed to support responsible AI use, cyber resilience and information confidentiality?
3. How do we ensure that AI governance doesn’t become a bureaucracy that slows the business down, e.g., that the governance process is flexible enough to handle rapid and ongoing change around AI?
4. What’s the right way to talk about AI ROI with senior executives and board members who are fatigued with discussions of AI hype without tangible results?
5. What are the primary considerations for measuring ROI from the deployment of AI tools, services and infrastructure? How are total costs estimated?
6. How does management ensure customers clearly understand when they are interacting with AI, and what impact does that have on trust, satisfaction and conversion?
7. In conjunction with the AI governance process, how should the board engage with management?
8. In conjunction with the AI governance process, how should the board improve its oversight process?
9. What information should boards and designated board committees expect regarding AI governance, risk and performance to effectively fulfill their oversight responsibilities?
10. How should AI risks be communicated to the board or a designated board committee? 

Read the full Q&A