Navigating generative AI: Four focus areas for boards and leaders
Navigating generative AI: Four focus areas for boards and leaders
This article was originally published by the Australian Institute of Company Directors.
Recently, BDO digital partner, Fahim Khondaker, presented his 60th public forum on Generative Artificial Intelligence (GenAI) in the past 16 months. In these forums, his aim is to cut through the hype of GenAI and help organisations make informed decisions about the role technology can play in their business.
As organisations weigh the potential benefits and risks of GenAI, it’s already causing a monumental shift in how we work and perceive the value of tasks. However, organisations must properly prepare for GenAI adoption before they can begin to reap the benefits.
Fahim and his team have developed a set of key focus areas that are crucial for boards and leaders to consider in the context of using GenAI. These focus areas fall into four categories: social impact, people impact, short-term organisational impact and long-term organisational impact.
Our responsibility in AI’s social impact
GenAI is arguably only a glimpse into what our future may look like if distributed evenly at scale. It is likely to be one early example of many advancements across several fronts. Our world is changing fast, and as Professor Genevive Bell from The Australian National University noted, so too are things like our sense of time, place, power, our ability to tell stories, and ultimately, what it means to be human.
GenAI is creating change at a societal level. It is important that organisations and people from all industries and sectors trial these new technologies at their early stages and contribute to shaping what the future may look like within their own context. This generation has a responsibility to future generations to at least try to ensure that the adoption and implementation of GenAI is ethical, equitable and sustainable for all.
Managing the human impact of AI
The perceived value of our work can be broadly divided into three categories: knowledge, application of knowledge and service delivery.
The internet (particularly Google) has changed how we value knowledge and the ability to recall information from memory. While it is still impressive to meet someone who knows a lot about a range of topics, we are all confident in our ability to find that same information online if we need to.
On the other hand, applying knowledge to a particular context is still a highly valued skill. This skill impacts the value we place on the contribution we make in our jobs and, to an extent, our self-worth. GenAI is disrupting this skill - we just don’t know yet the extent to which it will.
The popular consensus is that it will enhance people’s application of knowledge, but to many people in the workplace, there is a common fear that they may be replaced by GenAI. This is causing both excitement and anxiety among employees. Boards and leadership teams need to assist their people in navigating this change and actively drive this conversation within their organisations. More and more, we will see that people will start to vote with their feet and look to work in organisations where they can practice and develop their skills in using GenAI to mitigate these perceived risks.
As GenAI and other technologies continue to evolve, the service delivery aspect of our work will become increasingly important. Building rapport and trust with our colleagues and customers, along with ensuring that tasks are completed as required, will remain highly valued skills.
Developing a comprehensive short-term plan
As more companies begin to trial some form of GenAI technology, boards and leadership teams need to set the direction for the adoption of GenAI in their organisations. This is excellent as the hands-on experience allows everyone to experiment and explore potential use cases - we get to ‘grow with the AI products’ as they are developed further each day.
Organisations that want to be leaders in this space should consider a comprehensive plan that goes beyond trialling products, as this will ensure their organisation gets the most value (safely) from GenAI.
Key elements of this type of plan include:
- Education
- Business readiness and impact
- Information management and data trust
- Implementation & change management.
To successfully operationalise GenAI at an organisational level, many factors must be considered. These factors include leadership setting the organisational philosophy and culture towards GenAI, roles and responsibilities, funding and value, timing, access, security, privacy, and legislative and regulatory requirements.
Thinking beyond adoption for long-term organisational impact
Assuming that all organisations (including competitors, suppliers, and buyers) successfully adopt and implement AI, it is important for boards and leadership teams to turn their thoughts to what their organisations will look like in the future. If we reflect on television (on-demand streaming), taxis (Uber), or even restaurants (Uber Eats), we can see that those industries changed forever in ways we probably had not imagined until only a few years ago.
Boards and leadership teams need to have these conversations now, at an organisational and industry level, to ensure they stay ahead of the curve and truly consider the broader impact of GenAI.
There is no doubt that GenAI is in its infancy. It has a lot of risks and is often frustratingly inaccurate. There is still a chance that it may not quite live up to its hype and deliver on all of its promises. However, we have seen enough of its potential to warrant at least some effort into long-term planning from boards and leadership teams.
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