Risk Factors in AI Implementation: What Directors Need to Know

The question confronting today’s modern business is not whether to use artificial intelligence (AI), but where and how to use it effectively. AI has the capacity to disrupt a broad range of industries, revolutionize business functions, and provide a competitive advantage to early adopters. While not every company will end up incorporating AI into consumer products and services, it is increasingly evident that AI and data science will play a critical role in powering the future of operations across all industries. To remain ahead of the curve, boards must understand how AI systems work and the potential risks surrounding their implementation. This session will explore the legal, operational, and reputational risks associated with designing and deploying AI, and consider how those risks impact real-world decision-making. Panelists will address input and output risks, including the potential pitfalls of AI algorithms, the possibility of bias, errors and hallucinations, as well as intellectual property, trade secret, privacy, data protection, security, workforce and societal concerns associated with an organization’s development and deployment of AI systems. Finally, this session will address recent litigation trends and legal challenges arising from the rapid development of this emerging technology. Please note that this discussion is intended as an overview of potential risks in the implementation of AI, and a separate session will address the governance framework and the board’s approach to mitigating the risks of AI as part of its oversight function.