On September 12th we hosted another roundtable in partnership with The Cantellus Group - it's CEO Karen Silverman and Barbara Stymiest of CIFAR were engaging with our participants on strategies and tactics.
Our key takeaways were:
Emerging Importance of AI: AI and climate change are emerging as top concerns for organisations, with AI being recognised as a transformative general-purpose technology. Despite the fast pace of AI development, its business value and implications remain unclear to many, creating challenges for industries trying to adopt and govern it.
Governance Gaps: Boards are largely unprepared for AI oversight. There's a growing need for board members and the C-suite to enhance their understanding of AI, ensuring that governance is consistent across different organisational levels. Voluntary board education is insufficient and tends to be generic at this stage.
Shift from Risk Management to Resilience: Traditional risk management frameworks are becoming inadequate. AI and other global transitions (climate change, geopolitical shifts) demand a new focus on organisational resilience. This includes the ability to adapt to uncertainties and navigate risks that can't be managed traditionally. The role of the board is evolving from managing known risks to fostering an environment of agility and preparedness for uncertainties.
Strategic Impacts of AI: AI will fundamentally change how companies deliver products, interact with customers, and compete. Boards must ensure that their organisations have the structures and processes to integrate AI effectively, fostering innovation at the frontline. Strategic pivots, driven by AI advancements, will become more common across industries.
Frameworks for AI Governance: A governance framework for AI is being developed, with key pillars such as AI principles, literacy, governance structures, and tools for privacy, cybersecurity, and data governance. The aim is to create an environment where innovation can thrive while ensuring ethical and secure AI practices.
Future Governance Models: Boards must adjust their decision-making processes to accommodate the dynamic challenges AI brings. This includes rethinking meeting structures, investing in AI readiness, and embracing new governance models that prioritise agility, industry-specific insights, and resilience.
The discussion emphasised that AI governance is still in its early stages, but it is advancing quickly. Boards must be proactive in understanding AI’s implications for their specific industries, while also navigating a landscape filled with uncertainties.
Please let us know if you are interested in reviewing the opening fireside chat: ga(at)sustainability-board.org
AI & Sustainable Governance Roundtable