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AI Governance Appears on Corporate Radar

April 18, 2024
Harvard Law School Forum
Summary
The article from the Harvard Law School Forum on Corporate Governance, authored by Subodh Mishra of Institutional Shareholder Services Inc., discusses the emerging trend of AI governance in corporate settings, particularly in the S&P 500 companies. It highlights that only 15% of these companies disclosed some form of board oversight on AI, mainly within the information technology sector. With AI becoming increasingly material to business operations, there is a growing call for companies to not only reveal board members’ skills and oversight roles regarding AI but to also enhance these disclosures. The analysis reflects on the need for more comprehensive AI oversight mechanisms as investors and regulatory bodies begin to demand better management of AI-related risks and opportunities.
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