Title: Boards discussing AI at every meeting correlate with stronger AI returns, yet exposure to cost and liability remains high for healthcare, insurance, and financial services in Canada and the UK.
As a board member in a regulated industry such as healthcare, insurance, or financial services in Canada and the UK, you are acutely aware of the potential benefits that artificial intelligence (AI) can bring to your organisation. AI has been touted as a game-changer for decision-making, customer service, and business operations. However, with the growing adoption of AI comes increased exposure to risk and liability.
Protiviti’s research reveals that 63% of high-return organisations versus only 13% of low-return organisations discuss AI at every board meeting. This correlation suggests that boards who make AI a regular topic of discussion are more likely to see strong returns on their investment. While this finding may be encouraging, it also raises important questions about the potential pitfalls of AI deployment in regulated industries.
One of the most significant risks associated with AI is the capability risk. This refers to the potential for AI systems to fail or produce incorrect results, which can have severe consequences for your organisation and its stakeholders. Moreover, AI systems may not always provide transparent explanations for their decisions, making it challenging to defend them in front of regulatory bodies.
Another critical aspect is governance risk. As a board member, you are accountable for ensuring that your organisation’s AI systems align with its overall strategy and regulatory requirements. This can be difficult when the technology provider makes bold claims about the capabilities of their product without providing clear evidence or testing it against real-world scenarios.
Finally, there is liability risk to consider. When AI systems err or produce incorrect results, who is accountable? In regulated industries such as healthcare, insurance, and financial services, this question can have significant legal and reputational implications for your organisation.
Straven & Co examines AI decisions before they are acted on: stravenandco.com