Artificial intelligence has been used for decades but has grown in popularity since OpenAI launched ChatGPT in late 2022. Since then, investors and the public have become enamored with AI tools, pushing corporate issuers to follow, adopt and disclose their use of these tools.
On one hand, AI provides numerous opportunities for organizations to drive innovation and increase productivity. On the other hand, AI carries significant risks that organizations must manage.
Boards of directors and management teams, for example, are expected to adapt to changing expectations and the evolving technological landscape to stay ahead in an increasingly competitive environment. There are many reasons why it is important to have processes in place to appropriately oversee the development, use and management of AI systems and technologies. Investors’ views, ethical concerns and legal/regulatory developments are a few considerations that drive AI governance adoption.…
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