Need for boards of directors to champion Responsible AI

To now say that artificial intelligence (AI) has had a profound societal impact is a bit of an understatement. AI continues to transform the world. It has been shaping recent & future socio-economic landscapes and is bringing unprecedented opportunities for communities & businesses.

The role of AI in corporate decision-making has expanded significantly, with algorithms influencing tactical planning, resource allocation, risk management, and customer engagement. At its core, AI is empowering boards of directors with data-driven insights and predictive analytics, enabling more informed and strategic decision-making. By leveraging AI algorithms and machine learning techniques, boards are able to analyse vast amounts of data and derive actionable insights that may not be apparent through traditional means.

These benefits are leading to every sector in India rapidly embracing AI. As per the recent IBM Global AI Adoption Index 2023 study, 59% of enterprise-scale organizations surveyed in India have AI actively in use in their businesses.

This phenomenon of AI becoming pervasive across the core sectors of the Indian economy is also leading to enhanced perceived risks. The ethical implications of AI implementation are no longer peripheral concerns but central considerations for corporate governance. Concerns such as regulations, ethics, data governance, trust, and legality are gaining rapid significance – warranting the board of directors to add it to their agenda.

Responsible AI in the Boardroom

Incorporating responsible AI into corporate boardrooms requires a multifaceted approach that encompasses governance, culture, and technology. Boards must proactively establish clear guidelines and standards, and integrate ethical considerations into strategic decision-making processes. Moreover, fostering a culture of ethical awareness and accountability throughout the organization is essential for ensuring that responsible AI principles are upheld at every level.

Responsible AI practices in boardrooms can inculcate principles of transparency, accountability, fairness, and privacy throughout the organization. Implementing robust governance structures that delineate roles, responsibilities, and oversight mechanisms is crucial for fostering accountability in AI initiatives.

In addition to obvious benefits such as ethical decision-making and enhanced governance, responsible AI in boardrooms also leads to risk mitigation, and stakeholder trust. By embracing responsible AI practices, company’s boards can harness AI to drive sustainable growth, foster innovation, and build a more ethical and resilient organization for the future.

Need for an AI Ethics Board

An AI Ethics Board, working in tandem with the Board of Directors, jointly become the strongest and most effective foundation for instilling responsible AI within organizations. It serves as a critical mechanism to hold individuals and algorithms accountable and ensure that AI technologies are developed, deployed, and utilized in a manner that aligns with the company's ethical principles and the nation's guidelines, if any. An AI Ethics Board can guide navigating complex ethical dilemmas, promoting transparency and accountability in AI decision-making, and mitigating potential risks associated with AI bias, privacy infringement, and unintended consequences.

Organizations need to introduce an AI Ethics Board that provides centralized governance, review, and decision-making for all AI ethics policies and practices. The AI Ethics Board should also provide thought leadership and guidance on how the organization researches and exploits AI technology and associated data. The board can have a Chief AI Ethics Officer who leads a team with other board members and helps monitor and safeguard ethical values incorporated into AI systems, similar to the role of a data protection officer. Thus, by fostering a culture of ethical AI development and usage, organizations can not only safeguard against reputational damage and legal liabilities but also build trust with stakeholders and contribute to the responsible advancement of AI.  

In conclusion, the role of responsible AI in corporate boardrooms is becoming indispensable in navigating the ethical complexities of the modern world’s AI-driven decision-making. Corporate boards must take a proactive stance in championing responsible AI practices, recognizing that ethical considerations are not just a moral imperative but also a strategic necessity in the digital age.

Companies beyond those in the technology & IT industry are prioritizing responsible AI implementation to stay ahead of the AI curve. Through steps like establishment of AI Ethics Boards, they are increasingly asserting the importance of implementing responsible AI practices to address ethical concerns, mitigate risks, and build trust with users and stakeholders. Responsible AI is all set to occupy a key seat in Indian corporate boardrooms.

Rishi Aurora

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Rishi Aurora is Managing Partner at IBM Consulting India & South Asia