Strategy

Boards are eager to learn more about generative AI

In just the past six months, AI has become a top priority.
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Generative AI has been one of corporate boards’ top concerns this year, according to KPMG’s midyear observations on the 2023 board agenda. The technology is “being discussed in most boardrooms, as companies and their boards are seeking to understand its associated opportunities and risks,” the KPMG Board Leadership Center noted in its report.

That’s a striking change from just six months ago. AI played a minor role in KPMG’s On the 2023 Board Agenda report released in December 2022. That report discussed AI as just one of various technology-related issues, alongside data governance, cybersecurity, and economic risk.

But rapid advances in generative AI technology have put it atop boards’ priority list. Board members are seeking more education about AI, according to KPMG’s new report. They’re asking for experts to conduct high-level trainings on the benefits and risks of AI.

Boards are also concerned about the need to establish policies around the use of generative AI. “It’s important to develop a governance structure and policies regarding the use of this technology early on, while generative AI is still in its infancy,” the report’s authors said.

And entire boards also are taking on responsibility for AI oversight, rather than delegating it to one committee in particular, according to the report.

“Given its strategic importance, oversight is often a responsibility for the full board,” the authors wrote.

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CFO Brew helps finance pros navigate their roles with insights into risk management, compliance, and strategy through our newsletter, virtual events, and digital guides.