As artificial intelligence (AI) continues to develop and become more prevalent in corporations worldwide, there has been a significant increase in the associated risks. The nature of these risks is rapidly evolving, and corporate boards are struggling to keep up. In recent years, cybersecurity has surfaced as the primary corporate risk. In addition to dealing with new SEC regulations on cybersecurity disclosures, board members are confronting the escalating threats of ransomware attacks, data breaches, and other technical complications.
An underlying issue is the gap in expertise. Most board members are not cybersecurity experts and often prefer not to delve into the complexities of technical issues. Yet, they need to oversee these risks associated with AI. This raises the question of how they can effectively manage what they may not fully comprehend.
Cyber threats are not subsiding. With the advancements in artificial intelligence and machine learning technologies, they are diversifying and becoming more potent. The risk of corporate boards being unprepared or ill-equipped to handle such threats is a concern that cannot be overlooked.
For more insight into this matter, listen to Episode 287 — Board Oversight of AI Risks by The Volkov Law Group.