Chapter 19Governance and Ethics

GOVERNANCE AND ETHICS ARE IMPORTANT CONSIDERATIONS in the AI era. The changing nature of business necessitates addressing governance and ethics issues. We will look at the following:

  1. Corporate governance with AI;
  2. Governance of AI; and
  3. Ethics.

Notice the difference between governance with AI and governance of AI. One deals with implementing corporate governance with AI and the other with governing AI itself.


Your automation plan for corporate governance is composed of eight areas of capability building: forming and running effective boards, implementing executive checks and balances, internal controls, risk management, regulatory compliance, culture of accountability and transparency, protecting clients, and environment, social, and governance (ESG). Since ESG was covered in detail in the CSR chapter, we will only introduce that as a capability area.

  1. Effective board

    The history of problems in corporate governance is a living testament of board failures. With failed boards, we observe obliviousness on one end and hypocritical and disingenuous activity on the other. In the former we see an outright negligence stemming from laziness or indifference; in the latter a façade of deception. The good news is that thanks to AI, today we have several methods and capabilities at our disposal to make sure that we recruit and help manage effective boards. Here is how to deploy your AI tool set for board management:

    1. Select ...

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