Governance Institute’s guide to generative AI governance

‘Hey ChatGPT, write our organisation a guide on good governance around generative AI.’ If only it were that easy. We’ve all heard of the rapid pace of the evolution of AI, now a part of daily life for many organisations.

AI comes with numerous possibilities for organisations to leverage these technologies for benefit, such as forecasting, image analysis, voice recognition and machine learning. On the flip side, AI technologies come with the possibility of misuse, ethical concerns, reputational damage and legal issues, among many other risks. So how can organisations navigate potential governance missteps?

Governance Institute’s latest Good Governance Guide explains everything you need to know about generative AI in an easy-to-read summary of the risks and benefits of these growing technologies. The guide offers recommendations of what good governance looks like for directors and boards considering the application of AI within their organisations.

Governance Institute’s CEO, Megan Motto, welcomes the Good Governance Guide as a ‘helpful prompt’ for directors and boards to consider the impact of generative AI on their organisations.

‘These technologies are rapidly evolving. Organisations must look at the skills and roles needed at a board level and throughout the organisation to support the ethical use of generative AI.’

So, what is Generative AI? Generative AI can carry out relatively simple tasks and produce ‘new’ content that differs from the information from which it is derived. The technology can respond in a ‘human-like’ conversation or with a finished ‘product.’ The most familiar example is ChatGPT.

For an organisation, AI can play a role in decision-making, giving rise to ethical dilemmas and reputational issues, and therefore requires solid oversight. Our new Good Governance Guide acts as a useful tool for professionals in determining the roles and responsibilities of both boards and directors to ensure its lawful and ethical use through an appropriate governance framework.

The Good Governance Guide outlines the responsibilities of directors to consider both an approval mechanism for AI used within an organisation as well as the processes employed in the development of applications that contain AI.

Failure to properly consider the need for an AI strategy to develop and use AI may also result in strategic risks for an organisation and missed opportunities for growth.

To find out more about the governance around generative AI, download Good Governance Guide: Generative Artificial Intelligence.

For more information on the roles and responsibilities of directors when it comes to risk management, view our Risk Management for Directors: A Handbook.