Ammanath further underscores the urgency for board members to become more knowledgeable about generative AI and its influence on risk management. Generative AI, which includes large language models, image and audio generators, and code-writing assistants, is increasing productivity, generating new insights, and creating opportunities for revenue growth. However, it also amplifies the risks associated with AI and shortens the timeline for developing risk mitigation strategies. She suggests five steps to help board members prepare their organizations for a future shaped by generative AI.
Key takeaways:
- Generative AI is redefining what businesses can do with artificial intelligence, but it also presents complex ethical and risk management challenges.
- Most boards have at least one committee responsible for risk oversight, and AI risks, including security risks and biased outputs, need the same attention and investment.
- The rise of generative AI, including large language models and code-writing assistants, has made the AI-risk challenge more complex and urgent, requiring immediate strategies for risk mitigation.
- Board members need to become more knowledgeable about generative AI and its influence on risk management, and can prepare their organizations for its impact through a series of steps.