As artificial intelligence becomes more central to a company’s operations and long-term strategic positioning, directors must develop and maintain a robust understanding of how AI impacts their company, including the full spectrum of opportunities, risks, and ethical considerations, and apply the same oversight approach they apply to other areas of board responsibility, including corporate strategy, management performance, regulatory and legal compliance, risk management, and public disclosure obligations. Similar to the framework established for cybersecurity oversight, directors have fiduciary duties to implement and monitor AI governance systems, particularly when AI represents a mission-critical risk to the business. In fulfilling this duty, boards should work to ensure that adequate governance frameworks, policies, and internal controls are in place to guide the responsible development, procurement, and deployment of AI technologies across the organization.
This article addresses certain key dimensions of board AI governance: director fiduciary duties related to AI, the five pillars of an AI governance framework, responsible AI usage in the boardroom, practical considerations for AI-assisted board operations, and additional governance considerations.