By José Carlos Ortiz*
There is no doubt that artificial intelligence (AI) has significantly transformed the business environment, forcing organizations to adapt quickly and consider its impact on business operations.
The above raises key challenges in information security, data privacy and risk management related to its adoption. To address them, it is essential that the Board of Directors takes an active role in overseeing this tool, ensuring that appropriate policies and controls are implemented to ensure its ethical and responsible use.
Today, more and more companies are integrating AI into their daily operations, and a growing number of managers and executives expect it to become a fundamental pillar of their business strategies. In this context, boards must be able to balance the opportunities that this technology offers to increase operational efficiency through the development of new products and services.
Risk monitoring: information security and protection
One of the main challenges when adopting AI in organizations is the quality and reliability of the information, considering that the accuracy of the results depends largely on the data with which this technology is fed; If the content has errors or biases, companies’ decision making can be affected.
To mitigate this risk, boards of directors must work together with Senior Management to implement data cleaning and validation processes, ensuring that there is critical judgment on the information generated by AI and avoiding using it as the sole source or absolute truth.
Other key related threats are cybersecurity and data privacy. While AI can help strengthen companies’ security, it can also be used to execute more sophisticated attacks, which requires a thorough review of cybersecurity policies. Likewise, the fact that AI models require large volumes of data raises concerns about compliance with regulations on personal data protection.
The Council’s role in AI governance
The adoption of AI not only implies a technological transformation, but also a cultural and organizational one. Therefore, it is essential that boards establish appropriate governance structures that include responsible use policies aligned with the company’s values and mission. Likewise, it is advisable to appoint a person in charge to supervise the implementation of this technology and keep the Board informed about its progress and emerging risks.
Furthermore, governance requires coordination in all areas of the organization, in which not only the people in charge of the General Management or the Information Technology (IT) function participate, but also areas such as Risk, Finance and, in some cases, Regulatory Compliance. This structure ensures that all aspects of AI are monitored to be managed in a manner consistent with the company’s overall strategy.
Long-term challenges and opportunities
The Board of Directors must be prepared to adapt to the rapid advances in AI. This involves not only understanding your current applications, but also anticipating their evolution and associated risks as you deploy on a larger scale.
On the other hand, to take full advantage of its benefits, companies must have a solid, flexible culture and continuous training. To achieve this, the Board must actively promote the use of technologies to optimize routine activities or tasks, hand in hand with continuous learning that drives adaptation and allows talent to acquire new strategic and decision-making skills that add greater value to the business. in order to avoid risks or some type of resistance to change within the organization.
In summary, the Board’s role in overseeing AI is crucial to ensure that it contributes to the success of the company, while managing the inherent risks. In an environment where technological advances can be as disruptive as they are beneficial, boards of directors must serve as facilitators of innovation and as guardians of the correct application of technology; The key is to find the balance between the speed of adoption and the implementation of robust governance policies that ensure safe and beneficial use.
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*José Carlos Ortiz is an Advisory Partner in Corporate Governance, Risk and Compliance at KPMG México
Note: the ideas and opinions expressed in this writing are those of those who sign the article and do not necessarily represent the ideas and opinions of KPMG México.
The opinions expressed are solely the responsibility of their authors and are completely independent of the position and editorial line of Forbes Mexico.
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