Boards of Directors: Ethical Responsibility and Value Creation in the AI Era (part II)
Traditionally, discussions around AI have centered on its risks and opportunities—essential considerations. However, given AI’s transformative power, the dialogue needs to incorporate a more philosophical dimension. This means addressing not only the ‘what’ but also the ‘why’ and ‘how’ of AI integration, focusing on moral, ethical, and societal implications.
Adopting a philosophical lens towards AI challenges boards to move beyond traditional oversight. Their decisions should factor in the broader societal implications, understanding that the organization’s digital endeavors influence individual psychologies and societal dynamics.
In order to explore, experiment and scale AI responsibly, boards of directors must incorporate a vision and upfront commitment that AI should be transparent, accountable and fair, prioritizing user understanding and responsibility. It must respect privacy, work for humanity's benefit, individual autonomy, foster a just distribution of benefits and risks, and consider long-term safety and stakeholder collaboration.
Continuing from my previous article on AI governance, it’s essential for boards to understand AI’s philosophical aspects, ensuring a well-rounded and responsible stewardship. By deeply understanding the digital domain's ramifications, boards can lead with foresight, ethics, and awareness of the broader consequences of their decisions.
Here are other ways leading boards can approach AI responsibly:
• Tuning into the Infosphere: Engaging with the broader informational ecosystem is key for insight and risk management. With our experiences increasingly mediated by technology, every digital act, from data collection to content sharing, has ethical nuances. Boards need to recognize that companies are not just offering products or services but digital experiences. By understanding this evolving landscape, they can lead ethically and responsibly.
• Synergy and Safety in Collaboration: Exploring partnerships requires a balance between open collaboration and upholding core ethical values. Leading boards are championing comprehensive ethical assessments before establishing collaborations and fostering mutual ethical standards to ensure value alignment in partnerships.
• Adapting with Caution: The challenge is to respond in time to AI innovations while recognizing their broader implications. Agility is essential, but boards must also understand the deeper consequences of AI’s rapid advancements. Best practices include regular AI-focused scenario planning and ethical impact assessments before adopting new AI tools. Boards should prioritize transparent communication, both internally and externally and promote stakeholder trust during experimentation strategies.
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• Balancing Autonomy with Oversight: Generative AI’s perceived autonomy doesn’t diminish the need for human judgment. Boards should ensure that no matter how advanced AI becomes, human oversight remains essential. Leading boards are already establishing dedicated AI Oversight Committees and conducting frequent AI audits to ensure adherence to set standards and guidelines.
• Ethical AI - A Shield and Value Proposition: Ethical AI is not just a mandate but also a shield against potential risks. By integrating ethical considerations from the start, AI transforms from a potential liability to an asset, allowing companies to create, deploy or use systems that are transparent, fair, and beneficial. Ethical AI can enhance brand trust, AI-driven personalization can redefine user experiences, and AI-fueled insights can lead to innovative product offerings, and therefore, it becomes clear the importance of holding strategic and ethical collaborations going forward. Top-tier boards view ethical AI as both a regulatory requirement and a business strength, merging it with business strategy and actively engaging stakeholders to build trust around AI endeavors.
Generative AI marks a transformation in both the business and societal landscapes. For boards, the challenge is to merge technological advancements with ethical governance, ensuring a responsible and forward-thinking approach.
I look forward to continuing this discussion here!
Based in São Paulo, Olivia Ferreira is the Board Effectiveness Latam Lead at Accenture. She is passionate about innovation, effective leadership and governance, sustainability & diversity. This text reflects her personal experiences, observations and perspectives.
Independent Board Member | CCA+, CCoAud+, CCF+, IBGC
1yThanks for the hint, Olivia. When I was at Singularity Univ in 2017 my moonshot choice was exactly on the ethical challenges brought by AI…
Governance/ ESG/ Stewardship
1yDebra Everitt McCormack Samantha Barber Dannetta Bland Dali Sanghera Daniel Lázaro Lan Guan Karthik Narain Muqsit Ashraf Ray Eitel-Porter Dora Kaufman Alexandre Zavaglia Coelho Claudia Pitta Geraldo Affonso Ferreira Leila Abraham Loria Henrique Luz J. Monforte I am also very excited to start reading the new book “The Ethics of Artificial Intelligence: Principles, Challenges and Opportunities” by the expert Luciano Floridi 📚