AI and the Corporate Board's Duty of Care
The CorporateCounsel.net recently added a new practice area to the site, Artificial Intelligence -- calling it "the next corporate governance frontier." The editors also flagged a helpful five-page memo from Debevoise explaining the importance of getting your arms around AI if you’re advising boards. Here's the introduction to the memo:
"As more businesses adopt AI, directors on many corporate boards are starting to consider their oversight obligations," noting that their interest is rooted, at least in part, by the increasing focus on ESG issues. "There is a growing recognition that, for all its promise, AI can present some serious risks to society, including invasion of privacy, carbon emissions, and perpetuation of discrimination, " the memo continues. "But there is also a more traditional basis for the recent interest of corporate directors in AI: as algorithmic decision-making becomes part of many core business functions, it creates the kind of enterprise risks which board need to pay attention."
Check out the entire memo for an outline of current regulatory considerations, how Caremark claims could play out in this area, and suggestions from the Debevoise team on what boards need to be thinking about.
Published April 18, 2022.
