close x
download

Brochure

Enter Your Info Below And We Will Send
You The Brochure To Your Inbox!

aibotics go-ditial brochure (en)

Thank you!
Your submission has been received!

Oops! Something went wrong while submitting the form

brochure
News

Artificial Intelligence Expected To Have A Bigger Role In Board Decision-Making

Tony Featherstone
19.10.2018

“Less considered is how directors can use AI within the boardroom to process larger data-sets, test management assumptions, run more scenarios around capital-allocation decisions and gain greater insight into real-time organisation culture.”

On paper, Artificial Intelligence (AI) and governance look like opposing ends of a spectrum. AI uses technology to make decisions mostly about routine tasks. Governance is an art that relies on people who use experience and instinct to make complex decisions.

No computer could fully replace a director; no boardroom could be automated. But the intersection of AI and governance will be much larger – and sooner – than widely realised. Top boards will use AI not to replace directors, but as a tool to augment director decision making.

Executive teams are increasingly harnessing the power of big data and AI to analyse large data-sets, so it makes sense that boards follow suit.

For now, boards of large organisations are more concerned about the impact of big data, automation and AI on their organisation and its industry rather than the boardroom itself. Forward-looking directors want to understand how AI could create opportunities and risks in their industry and disrupt the organisation.

Less considered is how directors can use AI within the boardroom to process larger data-sets, test management assumptions, run more scenarios around capital-allocation decisions and gain greater insight into real-time organisation culture.

The idea is not as far-fetched as it seems. AI is already influencing governance at the edges: machine-learning programs used to recruit directors; algorithms used in board decisions; and boards using big data in strategic decisions, for example.

It’s early days, but as technology disrupts more industries, as the speed of global business increases, and as organisations become larger and more complex, human boards could struggle to keep up. Incorporating big data and AI into the boardroom, to supplement rather than replace human decisions, could redefine the nature of governance and aspects of corporate law.

Read the full story on Australian Institute of Company Directors

...
more posts