Artificial intelligence (AI) is rapidly becoming embedded in the way organisations operate, make decisions and manage risk. From recruitment and customer service to forecasting, reporting and strategic planning, AI is influencing information that reaches executives and boards every day.
For many organisations, the conversation remains focused on productivity and innovation. In the context of increased regulatory scrutiny and an upcoming Royal Commission into AI, boards should be asking a different question: could we explain and defend our use of AI if we were called before a regulator or Royal Commission tomorrow?
The emergence of AI as a governance issue is not creating new directors’ duties. Rather, it is creating new circumstances in which existing duties will be tested. Increasingly, regulators, courts and inquiries are focused not only on decisions themselves, but on the systems, controls and information flows that supported those decisions.
In the age of AI, governance is becoming as important as technology.
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Authors: Tom Griffith, Partner (tgriffith@piperalderman.com.au) Marisa Orr, Partner (morr@piperalderman.com.au) Travis Shueard, Partner (tshueard@piperalderman.com.au) |
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