The Handbook of Board Governance, 3rd Edition

14Artificial Intelligence Governance Standards

Sam De Silva, LLB, BMS, MBS, DBA, FCIPS, CITP, FBCS, FRSA

Partner, CMS Cameron McKenna Nabarro Olswang LLP

Barbara Zapisetskaya, BA, LLB

Senior Associate, CMS Cameron McKenna Nabarro Olswang LLP

Introduction

Artificial Intelligence (AI) is evolving at an ever-quickening pace with the technology being introduced across the world to solve problems, streamline processes, and improve performance. The global AI market size is projected to grow from USD 387.45 billion in 2022 to USD 1,394.30 billion in 2029 at a compound annual growth rate of 20.1 percent.¹ With the exponential growth of the use of foundational AI models (such as ChatGPT and Bard), the spotlight on AI as a whole has intensified. According to a recent Gartner, Inc. survey, 56 percent of marketing leaders see greater reward than risk in generative AI.² Further, 55 percent of organizations that have previously deployed AI always consider AI for every new use case that they are evaluating. More than half of organizations (52 percent) report that risk factors are a critical consideration when evaluating new AI use cases.³

Against this backdrop, in this chapter we will discuss common issues associated with AI implementation by organizations, ISO standards as an effective means of addressing AI risks within an organization, and practical steps organizations can take to ensure that their AI governance processes are effective and robust.

How Is Regulation of AI Developing? ...