Source: Harvard Law School Forum on Corporate Governance

The article highlights how the world’s largest companies are viewing artificial intelligence (AI) as both a transformative force and a risk multiplier. While AI offers opportunities for efficiency and innovation, it also introduces new risks in areas such as cybersecurity, ethical accountability, and regulatory compliance.

Corporate boards are increasingly concerned about the unintended consequences of AI, including bias in algorithms, privacy violations, and reputational damage caused by misuse or malfunctions. The article emphasizes the need for robust AI governance frameworks, urging companies to prioritize transparency, ethical oversight, and risk management strategies.

One key recommendation is for boards to incorporate AI risks into their broader enterprise risk management processes. This includes regular AI audits, ensuring compliance with data protection laws, and fostering a culture of accountability around AI use. Companies that proactively address these challenges will be better positioned to harness AI’s potential while mitigating its downsides.