7 Questions Boards Need to Ask about Artificial Intelligence and Other Transformative Technologies
NEW YORK, Nov. 13, 2018 /PRNewswire/ -- As risk oversight is increasingly complicated by advances in artificial intelligence and other digital innovations, WomenCorporateDirectors (WCD) is making a top priority the education of directors about the impact and risks of new technologies. "The sheer scope of what directors need to be on top of is challenging," says Susan C. Keating, CEO of WCD, which for the first time is holding its Global Institute in Silicon Valley, May 19-22, 2019. "Every corporate director, no matter what industry, is seeking to get a grasp on the latest advances and needs the right questions in hand when sitting down with CEOs and senior management."
"Why Boards Need to Understand the Impact of Artificial Intelligence (AI), Machine Learning, and Robotics" was a panel hosted by the WCD Greater New Mexico Chapter this summer and part of a series of tech and digital programming from WCD leading up to the Global Institute. With experts from the Santa Fe Institute and others in cybersecurity, complexity science, and enterprise IT, the discussion - moderated by Susan Keating - raised key questions for directors to take back to their companies.
Highlights included:
7 Questions Boards Need to Ask about AI and Other Transformative Technologies
1. Are we training the right people? Training in organizations is becoming
increasingly more important as new technologies continue to supplement or
replace current processes or enable whole new types of products and
services to be offered. But training is often directed to the wrong
people. For example, force-feeding IT people to be the "business people"
could be a recipe for disaster; traditional IT folks aren't as fluent in
the business domain - they are trained on the software. Companies should
instead do the reverse: train the business leader and the domain expert
in IT.
2. What's our corporate responsibility around retraining for new
technologies? There is a conversation beginning about the
responsibilities companies have around employment and training. Robotics
and AI are causing job displacement; these workers need training for
their next job, but the programs available from the government are
limited in availability and effectiveness. This leaves companies - that
are going to need talent that is trained in the latest technology anyway
- with the responsibility to retrain them. So when a company implements
the use of robotics in a factory, for instance, what is the impact down
the line on its workers, and what kind of skills is it setting itself up
to require in the future? How can this be factored into the company's
social compact with employees?
3. Where can we deploy new technologies and retrained talent in our
organization? With retraining, the introduction of new technologies does
not mean unemployment but rather a two-generation training process.
Robots can take over the repetitive work, improving the productivity in
these tasks and thus allowing newly retrained employees to do more
knowledge-based work. This will create a large organizational shift, so
companies will need to think creatively about how to capitalize on this
strategically, and where the retrained talent can create competitive
advantage.
4. What kinds of threats are we creating on the home front? As we build
smart cities and interconnected infrastructures, we are increasing risks
in our own cities and homes. Solar energy panels and wind generators are
just one area creating additional risk of cyber-attacks that could shut
down power grids and cut large portions of our power supply. Where is the
threat coming from? What are the targets? Are the hackers looking to
cause destruction or to steal data? As you evaluate the interconnected
technology your company is exploring, it's important to think of all the
vectors for risk.
5. How will changing technology standards affect our ability to
commercialize technology in different markets? U.S. companies have long
enjoyed the benefits of being able to define the global standards for
technology - setting domestic standards for things from USB ports to more
complex tech which would then be exported globally; this conferred great
competitive advantage for companies here. But the power has shifted.
China is investing billions as a nation, coordinating and creating the
standards for all tech and AI by 2030. In local industries and at the
enterprise level, they are setting the stage for what it means to work
and be competitive, and also setting the standards within critical
infrastructure, energy, utilities, and transportation. All of this
affects how companies in the U.S. will be able to take their products to
market overseas.
6. How are we vulnerable to attack, and what are we doing about it? As
transformative technologies like AI continue to spread throughout the
organization - as well as both upstream to the supply chain and
downstream to the consumer - this only expands a company's attack
surface. This is the trade-off, and boards have to ask where the data
resides, what is being done with it, and how it is being secured from
hackers who are capitalizing on the higher number of potential entry
points. Cyber insurance coverage is getting very expensive, and has
limitations - which could range from regulatory fines and penalties to
losses arising from "social engineering," and the reputational hit from a
publicized attack is practically immeasurable.
7. What are the opportunities and how do we monetize them? AI and machine
learning are a vast field, and most lay people have a limited
understanding of robotics. And advances in these fields are changing the
power and capacity and capabilities of these technologies every day. But
even as directors learn more about these emerging tools, it's
understanding what these mean in your own firm, to your own suppliers,
and throughout your own supply chain that is key. The senior team also
has to be able to clearly communicate this value within the firm. It's
not just about being "new" - but how the company can capture value with
this new tech.
Definitions:
-- Artificial Intelligence (AI): Branch of computer science dealing with
the simulation of intelligent behavior in computers.
-- Machine learning: Subset of artificial intelligence in the field of
computer science that often uses statistical techniques to give
computers the ability to "learn" with data, without being explicitly
programmed.
-- Robotics: Technology dealing with the design, construction, and
operation of robots in automation.
For press inquiries, please contact Suzanne Oaks Brownstein or Trang Mar of Temin and Company at 212-588-8788 or news@teminandco.com.
About WomenCorporateDirectors Education and Development Foundation, Inc.
The WomenCorporateDirectors Education and Development Foundation, Inc. (WCD) is the only global membership organization and community of women corporate directors. A 501(c)(3) not-for-profit organization, WCD has 80 chapters around the world. The aggregate market capitalization of public companies on whose boards WCD members serve is over $8 trillion. In addition, WCD members serve on numerous boards of large private and family-run companies globally. For more information visit www.womencorporatedirectors.org or follow us on Twitter @WomenCorpDirs, #WCDboards.
Upcoming WCD events:
Private & Family Company Director Summit: January 9, 2019, Orlando, Florida
"Key Risks Impacting Private and Family Companies"
WCD Asia Pacific Institute: February 21-22, 2019, Tokyo, Japan
"Resilient Leadership for a Disruptive Era"
WCD Global Institute: May 19-22, 2019: Silicon Valley, California
"Harnessing the Transformative Power of Technology"
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