Arun Sundararajan (New York U (NYU) Leonard N. Stern Business) has posted “How Corporate Boards Must Approach AI Governance” on SSRN. Here is the abstract:
As the landscape of artificial intelligence (AI) and generative AI evolves rapidly, AI oversight by corporate boards is essential for managing AI exposure and complying with new AI laws. Competitive pressure to stay ahead in the AI race is inducing CEOs to embrace innovation aggressively, making board oversight especially critical. I present a framework for corporate boards that identifies some key AI governance dimensions and provides guidelines for assessing their organizational risk and regulatory likelihood. The dual lenses of risk and regulation can simultaneously aid a board in prioritizing governance aspects to pay attention to and in choosing a robust oversight strategy. Mapping the risk-regulation matrix shapes appropriate recommended oversight strategies, ranging from proactive self-regulation and compliance monitoring to more passive wait-and-watch strategies. I provide a structured way to navigate the evolving regulatory and governance landscape while unshackling boards from the subjectivity and imprecision of terms like “responsible” or “ethical” AI, leading to oversight that aligns with a company’s unique risk profile and industryspecific regulatory context, while recognizing that AI governance touches a range of topics, from technology, intellectual property and sustainability to audit, measurement and risk assessment.