FEATURE: BOARDROOM TECHNOLOGY need for predictive insights is where AI can provide valuable oversight.
The effectiveness of board governance is reliant on the quality of the data presented
A board’ s decision-making process can be negatively impacted by usage of lagging indicators, siloed reporting or inconsistent risk updates. Information can arrive piecemeal, sometimes weeks after it’ s needed. Critical risks, like third-party exposures or reputational threats on social media, can escalate in hours not days.
The answer lies not in choosing between AI and human decision-making, but in understanding how to leverage both effectively. The most forward-thinking boards aren’ t asking whether AI should be in the boardroom. Instead, they’ re asking how to integrate it responsibly, ensuring it enhances governance without compromising security, ethical oversight or strategic thinking. blink of an eye and automate burdensome, resourceheavy governance processes.
AI-powered governance, risk and compliance( GRC) platforms can synthesise vast amounts of risk data from across an organisation’ s internal and external environment, from operational incidents and audit findings to regulatory changes and cyberthreats, and deliver clear, prioritised insights to directors.
However, a lack of AI expertise on boards could be holding companies back. A report by CSIRO and Alphinity indicates that only 40 % of Australian company boards have a director knowledgeable in AI ethics, with few companies having public AI policies, highlighting a significant gap in AI governance.
The boardroom of the futureis a partnership between humans and machines
To be effective, a board requires comprehensive, timely and actionable intelligence. This is where AI and modern risk technologies come in. AI can distil vast amounts of information, surface critical insights in the
It’ s important to dispel the misconception that AI will supplant directors’ judgment. No algorithm can replace human intuition, experience or ethical reasoning – nor should it.
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