NACD resources on AI and Board Governance

As artificial intelligence (AI) continues to permeate various aspects of business operations, directors face the crucial task of understanding its implications and integrating effective oversight mechanisms.

The technology is developing at a fast pace and the United States is a significant player in AI technology development given its strong ecosystem of research institutions, tech companies and investment in AI initiatives.

Our Global Network of Director Institutes (GNDI) counterpart, the National Association of Corporate Directors (NACD), has generously shared with us a set of resources tailored to guide directors through this complex terrain.

As New Zealand directors, we hope these resources serve members as indispensable guides while recognising the New Zealand context may present some variations, and we remain attentive to these potential differences.

NACD's Director Essentials: AI and Board Governance report delves into the intricate intersection of AI and board governance by offering insights into the strategic integration of AI, its potential impacts on business models, risk management frameworks, and ethical considerations. By exploring real-world case studies and best practices, directors gain a nuanced understanding of how to make the most of AI for competitive advantage while safeguarding against potential pitfalls.

NACD's 2023 Public Company Board Practices and Oversight Survey provides a pulse check on current trends, challenges, and emerging strategies, featuring a dedicated section on how public company boards worldwide are navigating the realm of AI. By benchmarking against peer practices, directors gain valuable perspectives to enhance their role in overseeing AI governance.

Additionally, NACD offers a practical boardroom tool focused on Board Decisions on the General Use of AI. This tool equips directors with a framework to consider the complexities of AI governance, ask the right questions and make informed decisions.

We would like to thank NACD for sharing these invaluable resources, which add to governance understanding around AI and empower directors to drive sustainable success in their companies/organisations.