The AI Governance decisions made by the Governing Body

Governing body AI decisions

Governing body decisions regarding AI 

Al systems use data to build models and make predictions as well as potentially automate decisions and actions. As with any use of information, technology, processes and human resources, the governing body remains accountable for these decisions and actions. Sometimes the use of Al can inadvertently result in harm to individuals or the organisation. Effective governance requires reviewing and potentially reinforcing existing governance mechanisms and controls to ensure that they are robust, explicit and appropriate.

Typical AI-related issues that a governing body should be concerned about are:

Accountability, Sustainability, Decisions

  • Stakeholder expectations
  • AI governance charter and policies
  • Organisational structure and terms of reference
  • Establishing an accountability framework and assigning decision-making rights
  • Bridging the AI and business functions
  • Developing AI processes and governance mechanisms
  • Encouraging the desirable use of AI
  • Relationship between AI governance and corporate governance
  • Maturity in AI governance enablers
  • Reporting requirements to keep the board informed.

Purpose and Strategic Alignment

  • Integration of AI into business strategic thinking
  • Integrate AI with the business strategy development process
  • Sustain and enhance the company’s strategic objectives 
  • Integrate AI plans with the business plans
  • Define, maintain and validate the AI value proposition
  • Improve on the company’s performance and sustainability
  • Align AI activities with business and environmental sustainability objectives
  • Include relevant representation from the business in oversight structures
  • Have regard for the legislative requirements that apply to AI
  • Translate business requirements into efficient and effective AI solutions
  • Support the business through the acquisition of people, process and technology.

Value Generation

  • Enable AI to add value to the business and mitigate risks
  • Incorporate AI in business processes in secure, sustainable manner
  • Business value proposition is proportional to level of investment
  • Deliver the expected return from AI investments
  • Measure and manage the amount spent and the value received
  • Build management skills and competencies to govern
  • Promote sharing and re-use of AI assets
  • Ensure all parties apply good governance principles
  • Monitor and enforce good governance across all suppliers.

Resource Optimisation and Viability

  • Implement and maintain sustainable AI solutions
  • Optimise resources usage and leverage knowledge
  • Protect information and intellectual property
  • Conduct post-implementation reviews to learn
  • Manage information assets effectively
  • Ensure the integrity and availability of information
  • Implement information records management
  • Obtain assurance about outsourced service providers
  • Obtain independent assurance about project management
  • Adequate business resilience arrangements.

Governance of Risk

  • Minimise AI risks to the organisation, natural persons and society
  • Implement an AI risk management process
  • Comply with applicable laws and regulations
  • Maintain an AI risk register
  • AI risk management plan
  • Implement an AI controls framework
  • Obtain assurance about the AI control framework
  • Obtain independent assurance about AI providers
  • Perform continual risk assessments
  • Consider and implement appropriate AI risk responses
  • Implement a cyber security strategy
  • Implement an AI Risk/Quality management system
  • Establish a business continuity programme
  • Treat all personal data as an important business asset
  • Provide the Audit and Risk Committees with relevant information.

Performance Measurement

  • Measure, manage and communicate AI performance
  • Processes for reporting to the board
  • Report to the Board of Directors on AI performance.

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