AI and Board Governance

There are several key considerations for company secretaries regarding the use of AI within your board eco-system:

1. Understanding AI Capabilities and Limitations:

• Efficiency and Productivity: AI tools can assist in various tasks such as researching and synthesising large amounts of information, identifying key discussion points from previous meetings or documents, and generating initial drafts of board papers. This can significantly save time and effort for the company secretary and the consumers of the board documents.
• Data Analysis and Insights: AI can analyse vast datasets to identify trends, patterns, and potential risks or opportunities that might not be immediately apparent to humans. This can enrich the content and strategic relevance of board papers.
• Automation of Routine Tasks: AI can automate some of the more administrative aspects of board paper preparation, such as formatting, cross-referencing information, and ensuring consistency across documents.
• Accuracy and Bias: While AI can process information quickly, its accuracy depends on the quality of the data it is trained on. Company secretaries must be mindful of potential biases in AI outputs and ensure thorough human review to verify accuracy and completeness. AI cannot yet reliably replicate the nuanced judgment required in preparing board papers, especially in capturing the rationale behind decisions.
• Nuance and Context: Board discussions often involve subtleties, unspoken understandings, and strategic considerations that AI might miss. Company secretaries need to ensure that AI-generated content captures the true context and intent of the information being presented.

2. Data Governance and Security:

• Confidentiality: Board papers often contain highly sensitive and confidential information. Company secretaries must ensure that any AI tools used comply with stringent data privacy and security protocols to prevent unauthorised access or data breaches. Ensuring that company data does not end up as part of the AI vendors data set is absolutely imperative.
• Data Integrity: It is crucial to maintain the integrity of the data used by AI and the outputs it generates. Robust data governance frameworks should be in place to ensure the reliability and trustworthiness of AI-assisted board papers.
• Regulatory Compliance: Company secretaries must ensure that the use of AI within the board eco-system aligns with all relevant data protection laws and regulations.

3. Human Oversight and Judgment:

• Maintaining Control: Even with AI assistance, the ultimate responsibility for the quality and accuracy of board papers rests with the company secretary. Human oversight is essential to review, edit, and refine AI-generated content.
• Strategic Input: Company secretaries bring their understanding of the company’s strategy, governance framework, and board dynamics to the preparation of papers. AI cannot replace this strategic input and judgment.
• Ethical Considerations: Company secretaries must ensure that the use of AI aligns with ethical principles and does not lead to unintended biases or unfair outcomes in the information presented to the board.

4. Governance Framework for AI Use:

• Establishing Policies: Companies should develop clear policies and guidelines governing the use of AI in the preparation of board papers, outlining acceptable use cases, data handling procedures, and responsibilities.
• Risk Management: A thorough risk assessment should be conducted to identify potential risks associated with using AI, such as data privacy breaches, inaccuracies, or over-reliance on AI-generated content. Mitigation strategies should be put in place.
• Training and Literacy:  Company secretaries and relevant staff should receive adequate training to understand the capabilities and limitations of AI tools and how to use them effectively and responsibly.
• Continuous Monitoring and Evaluation: The performance of AI tools used for board papers should be regularly monitored and evaluated to ensure they are meeting their intended purpose and are not introducing unintended risks or inefficiencies.

5. Legal and Regulatory Considerations:

• Legal Requirements for Minutes: While AI can assist in drafting minutes (which are often included in board papers or follow shortly after), company secretaries must ensure that the final minutes comply with legal requirements, such as accurately recording resolutions and key decisions. AI may not yet be capable of the nuanced judgment required for effective minute-taking, particularly in capturing the rationale behind decisions and dissenting views appropriately.
• Evidentiary Value: Company secretaries should consider the potential legal implications of using AI-generated content as part of board records and ensure that appropriate processes are in place to authenticate and preserve these records.

How AI works within Athena Board

Athena Board is a highly secure platform that protects customer data as a first principle. Our AI features leverage our security model and ensure that the same level of encryption used elsewhere in the solution is also used for any AI created artefacts.

Customer data of any type never leaves the Athena Board eco-system and is never used for AI training purposes; this means that customers data cannot be integrated with the larger AI engines (used for AI training purposes) as would be the case with other cloud-based solutions (Google Gemini, ChatGPT and the like).

The use of AI solutions is controlled by the administrators (company secretaries) and must be enabled explicitly for use. In addition, highly granular control is available on a document by document basis.

There is a technical overview of our AI implementations available for customers to consider prior to implementation. Please contact sales@athenaboard.com for details.

Summary

In summary, Athena Board enables company secretaries to safely adopt AI without compromising security or data sovereignty. Company secretaries should approach the use of AI for board papers with a balanced perspective, recognising its potential to enhance efficiency and provide valuable insights while remaining vigilant about its limitations and associated risks.

Establishing clear governance frameworks, maintaining human oversight, and prioritising data security and accuracy are crucial to leveraging AI effectively in this critical area of corporate governance.