In a recent meeting of corporate governance, which was attended by several hundred members of the Board of Directors who serve companies of all sizes and types, and in each industry, the question was asked about their number currently using artificial intelligence. About half of the directors in the room put their hands. But when they were asked if they were participating with artificial intelligence at any depth to help the responsibilities of governance, only 10 % of the hands were raised.
Despite its stories, this poll explains both restrictions and the capabilities of Amnesty International to assist the boards of directors. Using artificial intelligence to collect information and analyze it is not widespread among councils. However, there are indications that this trend picks up as part of the total bodies made by artificial intelligence to organizations, from the postal room to the administration room.
There is a tremendous possibility for AI Change the basic method The organization is operated. Almost 80 % of companies In a conversation McKinsey I reported the use of artificial intelligence in areas such as workflow, commercial operations, and data generation and analysis. Indeed, the councils devote more time and attention to discuss the use of artificial intelligence within their organizations, including More than 62 % of managers Those who were reported to participate in full discussions about the policies of the artificial intelligence of their companies.
Now, the question becomes how members of the Board of Directors can use this technology – actually and morally. As a long -term member of the Board of Directors, a former chairman and executive director of a $ 12 billion health care company, I am optimistic about artificial intelligence as a contributor to problem solving and decision -making. These capabilities increase the possibility of councils and management teams, alike, this technology-is not an alternative to human rule, but as a tool that allows more enlightening decisions.
Increase the business of the Board of Directors
Artificial intelligence has the ability to help members of the Board of Directors to become more knowledgeable and better to engage in discussions with management on challenges, opportunities, strategy and operational issues. It can be its largest contribution to managers in completing the “Council package” that the company has provided throughout the year to summarize the last performance, new developments, competitive challenges and potential acquisitions. It is expected that the members of the Board of Directors will read this information and digest it before the next meeting so that they can ask the administration’s questions and participate in the discussion. However, this information is fed to the board of directors by the company, which necessarily includes a degree of liquidation to determine the amount of details required and the depth of the discussion.
The open, honest and transparent information – enough to discuss meaningless without the directors ’disclosure – is the cornerstone of maintaining a trust relationship between the Board of Directors and Administration. your Member of the Board of Directors told me When I became the CEO for the first time Paxter International“Never surprise me, Harry. I don’t want to drive my car and to hear news about Paxter on the radio that I was not aware of.”
However, even with the best intentions, the administration cannot be expected to educate members of the Board of Directors about every economic, geopolitical or operational issue that affects the company. In addition, it may be tempting to focus more on what is happening well, instead of providing some important issues facing the company. In an increasingly complex world, members of the Board of Directors need to bear more responsibility to educate themselves and deepen their understanding of many parties to the issue – the transplantation Balanced perspective This is crucial to leadership -based leadership. In these endeavors, The next generation of artificial intelligence tools It can be enormous help.
Consider the example of the company that weighs the effect of American definitions on imported goods From China And the possibility of converting production into sites in other places in Southeast Asia. with Commercial conversations are developing quicklyThe definitions are proposed, canceled and modified quickly throughout the region. The rapid and brief AI inquiries in the field of management can assemble information about the current situation of definitions and commercial conversations. With a few key clicks, members of the Board of Directors can also get an insight into how other industries are affected and what production decisions they make.
The human part is difficult
The tool, however, is just good like the user. As my colleague at the Kelog College for Administration at North Westren University Mohan Sony Once note, the technological aspect of the use of artificial intelligence is relatively easy; Instead, “the human part you really need to pay attention to, because if you do not think about humans, the machines will not think of you.”
Often there are huge educational requirements to help members of the Board of Directors to become more comfortable using artificial intelligence. the Average age of the members of the Board of Directors For S& P 500, 63 years old, as it serves many of them until the 1970s – which means that they are barely digital citizens. In addition, as anyone who uses obstetric artificial intelligence knows, the quality received answer depends a lot on the quality of the question that is asked. This will require more than just one hour presentation by a council advisor. What is required is the training that will help managers put this tool into practice, with considerations on moral use such as not to disclose the company’s secret information during a inquiry to artificial intelligence.
With the continued development of the trade scene, companies and their councils need to keep pace with change. Members of the Board of Directors can serve better shareholders and implement their credit duties by learning how to use all tools – including artificial intelligence – at their behavior.
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