TheCorporateCounsel.net

Okay, we’ve established a few guiding principles for board oversight of AI. But how do you actually put those principles into action – for artificial intelligence and technology more generally? This Deloitte memo suggests that, for some boards, it may be helpful to cover some of the issues outside of regular meetings of the full board. For example:

– Audit committee meetings. Given that audit committees are focused on tracking major risks and compliance issues, it’s one place where technology is often discussed. “With the boards I serve on, technology is always in the conversation since there’s so much going on. We’re always discussing technology—if not in the primary board then in the audit committee meetings,” says Wong.

– Board strategy workshops. Smaller, less formal groups may also create opportunities for in-depth technology discussions. “During one of our quarterly board meetings, we had the board spend six hours with the extended senior leadership team in workshopping sessions where each breakout explored a different theme, like technology strategy,” says Burkey. “Being part of that process was great. You weren’t having that 12-minute conversation around the board table; you were really participating in a very meaningful and productive exchange.”

– Compensation committees. Today, compensation committees have responsibilities that extend beyond just overseeing a company’s compensation and benefit policies. They are increasingly focused on the overall talent experience, retention rates, and skills gaps, as well as coordinating succession planning with the nominating committee. One technology executive from a vehicle retailer recommended these committees look at progress against transformation goals when discussing leadership compensation, especially given the technology function’s capacity to transform businesses and corporate strategies: “Besides talent, how boards construct their compensation and reward system for management, and how they hold them accountable, can be tied to overall business transformation goals. Having a business transformation goal could be one of the parameters to determine compensation.”

The memo reports that 38% of surveyed executives say that their company has some form of “technology committee” to oversee tech-related issues. It also suggests questions that board members can ask their CIO or CTO to help ensure they’re getting the right information, including:

– How can our organization mitigate potential technological blind spots?

– What is our technology talent bench strength?

– What incremental, technology “easy wins” are possible if resources are unconstrained?

See Meredith’s blog a few weeks ago for even more suggestions…

– Liz Dunshee