How can technology drive superior governance outcomes and what are the risks and rewards?
Presented by BoardPro
Managing board meetings under pressure can be difficult, especially if you're a small business or not-for-profit with the same level of board complexity as larger organisations, but fewer resources. BoardPro makes governance easy with simple, effective board management software.
At a time of rapidly advancing technology, BoardPro is developing ways to apply artificial intelligence. BoardPro recognises that AI will have a significant impact on boardroom operations and governance. It’s an opportunity and a challenge that directors need to address proactively.
Chris Ridd MAICD, Chairman of BoardPro, says the starting point is making sure you have a system in place where you codify governance processes to pave the way for AI to be much more effective. SMEs and NFPs can benefit from having all their Board data properly structured in one place on a board portal, rather than across separate email threads, spreadsheets, calendars, board papers and minutes.
As an example, AI might then be used to look at all that information and produce a 12-month plan for board meeting agendas. A simple prompt could find actions that have been assigned and create a summary of the discussions over time, including outcomes.
If AI could contextualise all the historical information your board has, it could increase efficiency, accuracy of communications, and save time for board members.
“There's quite a cognitive load for a director, that can sometimes get to unrealistic levels for even high performing board members. So definitely, we think AI can help there,” says Ridd.
However, BoardPro cautions that boards need to exercise oversight when considering AI implementation in the boardroom.
AI can significantly alter existing business models, which presents both opportunities and risks that boards need to navigate. Privacy issues and ethical implications should be considered and bias is another potential risk.
“One of the use cases we often hear about is AI tools generating minutes of meetings. While this can be incredibly productive, there are risks involved with this. Particularly around data privacy and bias in decision making,” said Ridd.
“Directors need to be comfortable having robust boardroom discussions without fearing that the discussion is being recorded and summarised by an AI tool. This is where a professional minute taker may endure as they can understand the nuance of the discussion and make the appropriate decision about what is recorded.”
But there are other AI uses that would be efficient and effective in helping board members focus more on strategy, instead of an overwhelming amount of administrative jobs.
BoardPro is exploring building a large language model (LLM) on its webinar library to make it simple for directors to find answers to nuanced governance questions.
Anonymised data could also help inform boards across sectors and industries, says Ridd.
“Often you're running a board and you're kind of operating in isolation. It would be nice to know within your industry where you sit regarding what your board is discussing and what their focus is. If you could use AI to discover if you are in the bottom 25 per cent quartile of companies that are talking about strategy, I think that's a compelling insight.”
AI is a transformative technology that is redefining business practices. BoardPro knows directors cannot ignore AI or make only minor adjustments, but should instead embrace the AI opportunity, while carefully assessing the risks involved.
The rapid development of AI tools presents a challenge for boards to stay informed and make timely decisions about AI implementation.
“There’s a lot of work required for a board meeting, and a board portal can do much of the heavy lifting. AI is going to take that to a whole new level,” says Ridd.
It’s important to equip board members with actionable knowledge about AI, enabling them to implement AI solutions effectively and lead their organisations into the future.
BoardPro has the tools and the customer service to help directors understand the risks, and benefit from the rewards of AI in the boardroom.
Read more here.
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