AI Adaptation: A Primer for Corporate Directors

Abstract

The transformative and disruptive nature of Generative AI (GenAI) presents corporate boards and senior management teams with a challenging information gap. Most corporate officers lack sufficient understanding of GenAI to formulate effective AI adaptation plans, and most corporate directors are not adequately prepared to assess the senior management’s AI strategies. A growing appreciation of the AI information gap is poised to catalyze a paradigm shift in oversight practices. First, boards are about to recognize that organizational adaptation to the GenAI age is imperative and that this adaptation is considerably more complex than adopting a new technology. Second, boards will increasingly recognize that AI adaptation is critical to organizational viability and success. Board-level oversight of adaptation processes will prove indispensable. This offers a general framework for oversight of AI adaptation.

Keywords: Generative AI; artificial intelligence; corporate governance; oversight