author
While managers manage and boards govern, the board does retain ultimate responsibility for the organisation and its performance. Most recently this includes responsibility for the role of generative AI in the organization, noting that generative AI is developing at lighting speed and is being rapidly adopted across all industries.
A recent McKinsey & Company online article (CLICK HERE TO READ) provides some much needed guidance for boards on generative AI and their organisation. Boards run the risk of being too slow to adopt and being left behind or integrating too quickly and getting things wrong. The article poses four questions the board can ask of management to help them weigh the risks and benefits. Each question (listed below) is followed by some excellent notes on what this means for the board, and what follow up it might involve.
- How will generative AI affect our industry and company in the short and longer term?
- Are we balancing value creation with adequate risk management?
- How should we organise for generative AI?
- Do we have the necessary capabilities? Technology? Talent? Organisational culture?
In addition to these questions for management, the board should also ask some questions of themselves:
- Is our board composition appropriate for this seismic change in how business is done?
- How can we improve board members understanding of generative AI?
- How can we incorporate generative AI into our board processes?
Whilst not exhaustive, these questions provide a platform for boards to better understand and evaluate the integration of generative AI into the organisation.
Share