The Handbook of Board Governance, 3rd Edition

13Questions the Board Should Ask About Artificial Intelligence

Timothy E. Storus, LLB, ICDD

Toronto-based lawyer (nonpracticing), called to the Ontario Bar in 1980, and holding a designation from the Institute of Corporate Directors

Boards of directors must prepare themselves for the increasing use of artificial intelligence (AI) in the organizations that they oversee. Although AI is a much talked-about emerging technology, it is not too early for boards to turn their attention to this important topic. The use of AI has significant implications for the board’s role in the oversight of risk management and the strategic direction of their organizations. The following are some steps boards can take to ensure they can effectively evaluate and manage the risks of the use of AI by their organizations.

1. Understanding AI

There are many definitions of artificial intelligence. IBM suggests “Artificial intelligence leverages computers and machines to mimic the problem-solving and decision-making capabilities of the human mind.”¹ There are different types of AI, often referred to as narrow, general, or generative AI. In narrow AI, machines perform specific tasks, albeit the tasks may be complex. Examples are web searches, facial recognition, and manufacturing robots. In general AI, machines can solve problems. In generative AI, machines surpass human intelligence.

While AI can be a complex and technical subject, the board should assess their current knowledge level of AI to ensure ...