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Boards AI Leadership. The future of Corporate Governance.

Boards AI Leadership. The future of Corporate Governance. Academic research and book launch webinar

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Boards AI Leadership. The future of Corporate Governance.

  1. 1. AI Leadership for Boards: The Future of Corporate Governance Book Launch June 2020 Liselotte Engstam, NED & Founder Digoshen Fernanda Torre, House of Innovation SSE Robin Teigland, NED & Professor Chalmers June2020 4Boards.ai
  2. 2. “A diverse Board and a strong corporate culture. We are well positioned to achieve our strategic goal of driving profitable growth and building shareholder value." Fast moving, digitalized world increases pressure on boards June2020 4Boards.ai
  3. 3. Agenda • Welcome & agenda • The authors • The challenge • The research, the myth & results • The audience • Focus areas, Cases with board questions • The book • Q&A • Conclusion June2020 4Boards.ai Webinar MOD Fernanda Torre • In the chat • Add questions, insights, comments Where do you call in from?
  4. 4. Authors and Presenters June2020 4Boards.ai
  5. 5. Agenda • Welcome & agenda • The authors • The challenge • The research, the myth & results • The audience • Focus areas, Cases with board questions • The book • Q&A • Conclusion June2020 4Boards.ai
  6. 6. Besides Pandemic – Five trends with biggest impact on your company next 12 months NACD Public Co Survey 2019 June2020 4Boards.ai
  7. 7. Digital Business capability Digital Leadership capability 2012 2018 39% 39% 2012 2018 45% 35% Company leadership capability is lagging business capability MIT, www.Digoshen.com/Research June2020 4Boards.ai
  8. 8. Boards and management are not aligned on AI importance June2020 4Boards.ai AI in Europe & Sweden, EY and Microsoft 2018 (n=267)
  9. 9. Discussed frequently / often Needmoretimeon 50% 100% 40 % 20 % Regulation Extern al Reporting Risk Management Governance & Compliance Sustainability Culture; Values Succession, talents Data & Technology Impact Strategy Commercial Challenges, Disruption Value Creation for Owners Ridgeway Partners 2018/ SISU Boards/Digoshen 2020 What we discuss on boards – but with appropriate input, competence, structure, time, results? ^ Cybersecurity ^ Business Continuity, Solvency June2020 4Boards.ai
  10. 10. • 62% major company boards consider themselves digitally savvy MIT CISR 2018 – Stephanie Woerner • 3 digitally savvy board members needed to affect results • Companies with digitally savvy boards had • 38% higher income growth • 34% higher return on asset (ROA) • 34% higher market growth • External detailed evaluations show - only 24% Digitally Savvy Boards, the next competitive advantage! by Stephanie Woerner, MIT June2020 4Boards.ai
  11. 11. Agenda • Welcome & agenda • The authors • The challenge • The research, the myth & results • The audience • Focus areas, Cases with board questions • The book • Q&A • Conclusion June2020 4Boards.ai
  12. 12. 4Boards.ai research project Objective To identify, codify and disseminate a set of best practices to enable corporate boards to more successfully govern and leverage AI and other exponential technologies in their innovation and sustainability efforts Prof & NED Robin Teigland Chair NED Liselotte Engstam Fernanda Torre, House of Innovation SSE June2020 4Boards.ai
  13. 13. 0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 105 respondents 4bai Survey 2020 75% Chairs & NED board members 7 % CEOs, 4 % owners, 15 % other support (Swe + International via INSEAD IDN) 4boards.ai 2020 Data Collection • Survey 800 Digoshen • Survey 105 4bai => • Survey 150 at board workshops • 30 board & AI expert interviews • 25 chair interviews • Ongoing NED board engagements • Systematic academic & practitioner literature review Extensive data underpin our research June2020 4Boards.ai
  14. 14. AI on boards in future Still some time before • AI for decision making • AI as board members Examples • Vital at Deep Knowledge Ventures, Hong Kong • Alicia T at TietoEvry, Finland Boards will have to govern AI, long before using AI AI on boards now Already need for • Governing operational AI • Supervising AI governance Examples • Amazon, Google, Facebook • Alibaba, Tencent • IBM, Microsoft • Ericsson, Siemens…. Average company 84% Need AI for growth 75% Out of business without AI at scale Accenture 2019 June2020 4Boards.ai
  15. 15. For companies to progress responsibly with AI, boards need to master the balance of guidance with supervision Board Guidance of AI Operational Capability June2020 4Boards.ai Board Supervision of AI Governance Capability 4boards.ai 2020 Digital & AI-based Innovation Developing Digital Business Ecosystem Data Strategy & Management Leadership in Digital Business Ecosystem Data, Ethics & Black Box Decision Making AI Cybersecurity
  16. 16. 0 5 10 15 20 25 30 35 40 % of Boards Guiding Now Yr 2023 Guidance of AI Operational Capability: 55% boards not guiding, 38% still not guiding in 3 years June2020 Digital & AI-based Innovation Developing Digital Business Ecosystem Data Strategy & Management Guidance 4Boards.ai 4boards.ai 2020
  17. 17. 0 10 20 30 40 50 % Boards Supervising Now Yr 2023 Supervision of AI Governance Capability: 63% boards not supervising, 34% not supervising in 3 years 4boards.ai 2020 June2020 Supervision Leadership in Digital Business Ecosystem Data, Ethics & Black Box Decision Making AI Cybersecurity 4Boards.ai
  18. 18. Increased ambition needed to secure company survival Supervision of AI Governance Capability Not Active In Plan/ Pilot Operational Avanced Differentiating World Leading Board Members Guidance of Operational AI Capability 2023 Now June2020 4Boards.ai 4boards.ai 2020
  19. 19. Chairmen have higher ambition, especially for supervising Guidance of Operational AI Capability Supervision of AI Governance Capability Not Active In Plan/ Pilot Operational Advanced Differentiating World Leading Board Members Chair 2023 Now June2020 4Boards.ai 4boards.ai 2020
  20. 20. Agenda • Welcome & agenda • The authors • The challenge • The research, the myth & results • The audience • Focus areas, Cases with board questions • The book • Q&A • Conclusion June 2020 4Boards.ai
  21. 21. Audience poll Participants input – respond to the poll 4Boards.aiJune2020
  22. 22. Agenda • Welcome & agenda • The authors • The challenge • The research, the myth & results • The audience • Focus areas, Cases with board questions • The book • Q&A • Conclusion June 2020 4Boards.ai
  23. 23. Our book has a checklist of questions for board maturity and to support AI guidance and supervision June2020 4Boards.ai 4boards.ai 2020
  24. 24. Boards required Guidance of AI Operational Capability Marketplace for digital employees June2020 Digital & AI- based Innovation Data Strategy & Management Developing Digital Business Ecosystem 4Boards.ai 4boards.ai 2020
  25. 25. Boards required Guidance of AI Operational Capability Marketplace for digital employees- Guidance: capability in handling complex relations? - Monitor: continuous assessment of partners in the ecosystem for faster and better actions? - Guidance: development of organization’s data management strategy adjusted to business strategy? - Monitor: assessment of org’s usage of internal & external data for value creation to customer & company? - Guidance: identification of user examples to improve operation and offerings? - Monitor: learning from the organization’s usage of AI for incremental innovation in operation/ experiments? June2020 Digital & AI- based Innovation Data Strategy & Management Developing Digital Business Ecosystem 4Boards.ai 4boards.ai 2020
  26. 26. Boards required Supervision of AI Governance Capability June2020 Data, Ethics & Black Box Decision Making AI Cybersecurity Leadership in Digital Business Ecosystem 4Boards.ai 4boards.ai 2020
  27. 27. Boards required Supervision of AI Governance Capability - Supervise: governance of strategic assessment of cyber risks, do we understand the risk & impact? - Monitor: employees trained & organization tested for management of ethical and cyber risks? - Supervise: register of used AI applications in the organization? - Monitor: algorithms transparent and reviewed? - Supervise: building stakeholder & society trust when implementing AI? - - Monitor: how are partners complying to AI policies across the ecosystem? June2020 Data, Ethics & Black Box Decision Making AI Cybersecurity Leadership in Digital Business Ecosystem 4Boards.ai 4boards.ai 2020
  28. 28. Agenda • Welcome & agenda • The authors • The challenge • The research, the myth & results • The audience • Focus areas, Cases with board questions • The book • Q&A • Conclusion June 2020 4Boards.ai
  29. 29. One of several book endorsements June2020 4Boards.ai
  30. 30. June2020 4Boards.ai The Book
  31. 31. Agenda • Welcome & agenda • The authors • The challenge • The research, the myth & results • The audience • Focus areas, Cases with board questions • The book • Q&A • Conclusion June 2020 4Boards.ai
  32. 32. Questions & Answers June2020 Questions? Comments? 4Boards.ai
  33. 33. Agenda • Welcome & agenda • The authors • The challenge • The research, the myth & results • The audience • Focus areas, Cases with board questions • The book • Q&A • Conclusion June 2020 4Boards.ai
  34. 34. Revisit the boards digital opportunity approach 4boards.ai, NACD, Digoshen Board Guidance Board Supervision Leadership in Digital Business Ecosystem Data, Ethics & Black Box Decision Making Digital & AI- based Innovation Developing Digital Business Ecosystem Data Strategy & Management June2020 AI Cybersecurity 4Boards.ai
  35. 35. June2020 4Boards.ai
  36. 36. Thank you and you are welcome to contact us! Website June2020 Liselotte.Engstam @digoshen.com Robin.Teigland @chalmers.se Fernanda.Torre @hhs.se 4Boards.ai For link to survey & book: www.4boards.ai

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