The AI board agenda

In January 2023, ChatGPT reached 100 million users just two months after its launch, making it the fastest-growing online platform. In contrast, other social media platforms took several months to years to gain similar traction. Additionally, Forrester’s 2022 Global AI Software Forecast predicts that off-the-shelf and custom artificial intelligence (AI) software spending will double to $64 billion in 2025 from $33 billion in 2021, meaning it will grow 50% faster than the overall software market. These developments are significant, showing that generative AI has the power to reshape our society and the way we do business.

With generative AI capable of creating text, images, and audio, people are discovering that the technology is manifold for business applications. Billions have been invested in its applications, with use cases that vary between drug development and software coding. The digital world is constantly evolving, and AI comes with opportunities and risks for organizations. Business leaders should consider how they can leverage it, starting in the boardroom.

According to the latest EY CEO Outlook Pulse, which focused on how 1,200 CEOs worldwide currently use AI and their plans to leverage it in the future, CEOs recognize the benefits of AI but are simultaneously wary of the unintended consequences of the technology. Though they acknowledge its potential to drive business efficiency, they believe there are still significant ethical, social, and cyber risks that need to be mitigated, from disinformation to cyberattacks and deepfakes (where deep learning, a form of AI, makes convincing image or video hoaxes).

To realize AI’s full potential, business leaders should integrate AI into their overall business strategy, creating long-term value for their customers, clients, and stakeholders.

Does your organization have an AI-related strategy?

Technology traditionally falls under the domain of CIOs and IT teams, but generative AI is changing that. Due to the technology’s accessibility and simplicity, organizations no longer need highly specialized personnel to operate it. Simply put, most employees can utilize AI for their day-to-day tasks.

Emerging technologies tend to follow a pattern — it starts with a nascent, excitement-filled stage followed by a contentious period replete with moral, ethical, and legal arguments surrounding their use. Boards should devise a strategy to deal with this tumultuous period — one that is comprehensive and organization-wide.

How will you integrate AI into your organization’s business model?

Generative AI utilizes a learning model that can process considerable datasets and produce novel intelligence. As such, employees can engage with AI to gather data and insights about the company. Some businesses have already utilized the application’s extensive capabilities. For example, law firms could use AI to access large volumes of legal content and generate insights and recommendations for their clients.

Given the potential for AI, boards must urge their executives to think at a larger scale. This technological development presents opportunities for organizations to reconsider their business models by leveraging AI, allowing them to streamline operations and differentiate themselves in the global market. Ultimately, successful companies will adopt strategies that capitalize on their respective strengths.

Does your organization have a risk mitigation plan?

Despite the excitement around AI — bias, misinformation, and ethical concerns still exist. A wealth of information is available on the internet, and AI may be unable to distinguish whether they are copyrighted, potentially leading to lawsuits. There have also been recorded instances of individuals using AI to write songs and replicate artists’ voices, which only compounds the problem. CEOs from the EY Outlook Pulse highlight that AI has the potential to disrupt the entire digital environment, especially when it comes to online security and privacy.

Already faced with the pressure of deploying technology faster to cater to the evolving needs of their customers, their people, and the business ecosystem, organizations must also be swift with creating and implementing risk-mitigation strategies, as failure to respond to emerging technologies could be costly for business leaders. To fully capitalize on AI, companies should already start planning how to minimize or eliminate potential risks by upskilling employees, implementing rules, understanding the AI landscape, and identifying potential threats.

Nearly half of the respondents from the EY CEO Outlook Pulse are already investing in AI-driven innovation and fully integrating AI-driven service or product changes into their capital allocation process. With these new technologies quickly maturing, organizations that can leverage them as instruments of creativity will be poised for success.

THE FUTURE OF AI IN BUSINESSWhile the use of AI is accelerating, there is still no clear public policy surrounding the use of AI. It will take a collaboration between the private sector and policy makers to align in addressing trust and ethics in the technology and develop a working set of guidelines.

However, though it is still in its nascent stage, generative AI is here to stay and has already changed the digital working world. By properly leveraging AI’s capabilities, organizations can transform and better position themselves to create long-term consumer value.

Wilson P. Tan is the chairman and country managing partner of SGV & Co. and the president of FINEX.