The Conference Board Highlights Steps Boards Can Take to Understand “AI in the Era of ESG”

The Conference Board released a publication entitled “AI in the Era of ESG: Nine Steps Boards Can Take Now” which highlights how the development and use of AI by companies may impact their approach to ESG. The report sites nine recommendations for boards to consider as AI technology continues to proliferate the business community. While the recommendations are more focused on what corporate boards should be considering, there is likely to be overlap for fund boards as part of their oversight and understanding of the fund’s investments and strategy. The nine recommendations include:

• Engage with the technology to gain first-hand understanding of how it works;
• Ask management to provide an overview and regular updates on how AI intersects with the company’s business;
• Consider how to address AI at the Board level;
• Ensure management is devoting sufficient cross-functional resources to this area; and
• Incorporate AI into “Enterprise Opportunity Management.”

As the SEC works to finalize recent proposals on cybersecurity risk management, “boards will be taking a fresh look at their role with respect to data security.” This in turn should “trigger a broader discussion of how they will address AI.”

Click here to read The Conference Board’s “AI in the Era of ESG: Nine Steps Boards Can Take Now.”