In the rapidly evolving landscape of artificial intelligence (AI), boardrooms around the globe are at a pivotal crossroads. The integration of AI into corporate governance and strategic planning is no longer a futuristic concept but a present-day necessity.
The Boards Impact Forum, in collaboration with the World Economic Forum, recently underscored this imperative, initiating a dialogue on the crucial role of generative AI in driving business-led transformations and creating value amidst this technological paradigm shift.
The Webinar and Peer Exchange held on March 5 on Boards and Generative AI, is also part of a full Masterclass Program “Boards Oversight of Responsible AI”, still open for registration; read more below.
The Webinar Boards and Generative AI included insighful presentations by Mats Agervi, NED and CEO of Combient, representing 38 large Nordic Companies, shared his perspective on the groundbreaking shift AI makes and how they are guiding their boards to take comprehensive trainings to stay abreast. It also indlude the perspectives of Bente Sollid Storehaug, Chair and NED shring insights on the impact of AI and importance for boards.
Table of Contents
Embracing Generative AI for Strategic Leadership
The discussion shed light on the profound impact generative AI is having on corporate governance. With a focus on AI leadership, the forum brought together board directors to explore the nuances of generative AI through peer sessions and expert insights, emphasizing the need for a strategic integration of AI into business models. Participants represented 17 countries with a significant audience from the Nordics.
Revolutionising Efficiency requires Strategic Oversight
Generative AI is revolutionizing business processes, efficiency, and problem-solving capabilities, but also brings controversaries that boards needs to prepare for.
Navigating Dilemmas in a Fast-Changing World
An example mentioned was Klarna, a global payment application. The reduced their workforce with 700 employees 2023. In 2024 announced that their new customer service chat, based on Open AI, in less than a month was trained on 23 million conversations, and is now handling 2/3 of their customer service chats in 35 languages, with a satisfaction rating equal to humans. This steered a lot of media on the responsibility of the company, Read the Fortune article “Klarna froze hiring because of AI, Not it says chatbot does the work for 700 full-time staff” , and an interview with CBSNews on why they shared the use of AI to replace customer service agents.
This example illustrates the critical need for board readiness in overseeing AI implementation, emphasizing strategic integration, operational excellence, and sustainable AI practices. And a deep discussion also on the handling of the workforce, including decisions on retraining versus layoffs.
Shaping Collaboration and Future-Proofing Business Models with AI
The acceleration of AI technology introduces dilemmas around leadership, innovation, and balancing short-term versus long-term strategies. Mats Agervi, CEO Combient and board director, shared insights on navigating these challenges, highlighting the importance of collaboration and leveraging collective knowledge for business transformation. The collective effort of 38 Nordic enterprises exemplifies the power of collaboration in accelerating AI innovation and transformation.
The rapid advancement and widespread adoption of generative AI, particularly chat GPT, are democratizing AI technology and reshaping collaboration models. Organizations are now focusing on building comprehensive training programs for board members and management teams to understand and effectively implement AI for long-term success. This “AI – take 2” approach signifies the emergence of a second generation of AI technology, offering companies another opportunity to successfully integrate AI into their operations.
To stay competitive and safeguard valuable data, organizations must prioritize security, trust, and quantum-safe encryption. This involves combining core business with big tech data to innovate while addressing transformation challenges head-on. Board members are urged to focus on future-proofing business models, understanding AI’s importance, and driving ethical, business-led transformation to create value in the face of AI’s paradigm shift.
The Urgency of AI Competence and Responsible Innovation
As AI technology continues to evolve, board members are tasked with understanding its impact on disruption, improving data quality, and preparing for future regulations. Emphasizing AI competence and responsinle innovation is crucial for boards to navigate the challenges ahead, utilizing new AI services to enhance company initiatives, was shared further by Bente Sollid Storehaug, Chair and NED.
AI is becoming a transformative technology, but the quality of data needs to improve for it to be fully integrated into business systems, leading to the development of an AI ecosystem with more autonomous business models in the future.
Recording
Find a link to the recording of the webinar here https://youtu.be/_SaY-IKYk-I?si=AYhBH8ttzpVuk2Eu
Conclusion and Next
The Boards Impact Forum’s discussions and upcoming events on AI and sustainability underscore the urgent need for boards to adapt, innovate, and lead in the AI-driven corporate landscape.
The Masterclass Program “Boards Oversight of Responsible AI”, still open for registration until March 10; >> read more below and sign up here
Upcoming Events
March 26 at 8-9.30 CET Chairs fostering Psychological Saefety: Primer for Sustainability and AI Debates. Webinar and Peer Exchange run in collboration with INSEAD Corporate Governance Center, Chapter Zero UK and Climate Governance Initaitve Hong Kong. Presentation will be held by INSEAD Professor Stansialv Shekshnia and followed by a panel discussion with three distiguished chairs Nicolas Allen, Katarina Bonde and Rolf Pfeiffer. Read more and sign up here
More events organized by Climate Governance Initative https://boardsimpactforum.com/international-events/
Other Relevant Blogposts
AI and Innovation is set to skyroeket Market Value, Trasnform Industries and Impact Sustainability
Digital Guardianship – Enhancing Board Level Oversight of Cyber Resilience
About Boards Impact Forum and the blogpost
Events arranged by Boards Impact Forum in collaboration with World Economic Forum (Non Profit Board Network, partnering with Board Networks , INSEAD Corporate Governance Centre, Digoshen and Next Agents )
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