Who drives the strategy?
In most companies with board members we surveyed, the head of technology (38%) is responsible for driving the GenAI strategy, but 32% believe everyone in the organization understands the value and potential of GenAI. They say they have a responsibility to clarify certain areas. A significant number of companies (15%) have formed teams focused on driving their GenAI strategy.
“As companies continue their AI journey, it is important that boards and executives know how to oversee this technology, its applications, and possible risks,” said the study's partners. says Dottie Schindlinger, executive director of the Diligent Institute.
Sonita Lontoh, an independent director at Sunrun and TrueBlue and an advisor at VC firm Sway Ventures, says board conversations about GenAI start with broad conversations about goals and become more detailed over time. is said to be ideal. “Boards and companies need to define their organization's GenAI goals, including what their risk appetite is, how much resources they will invest, and how integral GenAI is to their business strategy,” she said. said. “To that end, boards and executives need to understand the potential of AI for a particular business through several perspectives, including cutting through the complexity and hype and understanding the difference between 'everyday AI' and 'game-changing AI.' Risks and opportunities need to be considered.
Frequent reporting is also important, Nelson said. “Regardless of a company's industry or growth stage, AI needs to be on every board meeting, and even every board meeting, every agenda item,” she said, adding that boards need to be sure that their AI strategy is I pointed out that we are looking at it through three questions.
1. Does the company provide resources for this?
2. Does your company have the right people in place?
3. Do we as a board understand management's plan and how does it align with long-term strategy?
Some directors believe that appointing someone to lead the AI strategy is essential. “It shouldn't be an afterthought or something like, 'Let's find someone to look at this,'” Nelson said. “We're really thinking about who are the best people who can have an impact within the organization, not only with a technical mindset, but also with a really strategic mindset.”
“This individual will ensure that the company’s AI strategy actually supports and aligns with the overall business strategy for long-term value creation and contributes to real business outcomes. ” Ronteau added. “This person works not only with the technology team, but also with a cross-functional team of business and legal, finance, compliance, and audit leaders to ensure the company has a set of guidelines and standards. We also need to act to ensure that our AI approaches are ethical and responsible. ”
