The 2022 AI Governance Report is published today, finding that:
- 58% of organisations either have no artificial intelligence (AI) expertise on their Boards or do not know what proficiency they may have
- over 90% have no structures or processes in place to control the use of AI
- and 59% of Board members are not aware of what AI-related regulations are being considered whilst 26% would welcome regulations that provide a level playing-field.
The 2022 AI Governance Report surveyed over 700 leaders, including members of top business organisations like the Institute of Directors, to find out how ready they are to control the use of AI in their organisations and ensure these new tools and technologies are beneficial.
Despite the growing prevalence of AI-powered tools and services, most Board Directors are unaware of how AI works and how they could harness its power to benefit their organisations. Because they are unable to assess and control the risks AI use can bring, Directors are vulnerable to making mistakes with AI that harm their organisations and may damage wider society. As a result countries will be slower to realise the economic benefits and efficiencies AI offers.
Sue Turner, Founding Director of AI Governance Limited, said: “AI opens up massive new opportunities to find patterns hidden in data. When businesses, public sector and third sector organisations use those patterns to predict, personalise or automate processes it can revolutionise how they work, generating profits, efficiencies and wider public benefits. But this report shows that bosses are poorly equipped to take advantage of AI and could make serious mistakes if they don’t learn how to control its use.”
The Report gives examples of mistakes such as:
- the hiring algorithm that was based on fake science when it purported to predict job candidates’ suitability based on their facial expressions
- a property business that lost $300 million when its AI model failed to predict prices accurately enough after market conditions changed in ways it had not been trained to expect
- a system to predict when it was safe to swim in the sea which was accurate less than half the time – that’s worse than just flipping a coin.
The Report highlights how five businesses are using AI in a considered, controlled way with case studies to encourage leaders to improve their use of AI.
“Ignorance is definitely not bliss when it comes to leaders’ knowledge about AI,” says Sue Turner. “Too many leaders are unaware that AI is already all around them. When they challenge their employees to reduce hiring costs or procure a new phone system, the probability increases almost daily that they will bring AI into their organisation without knowing it. It’s time for all leaders to realise that they cannot build a wall to keep AI out.”
The report urges leaders to get educated on what AI is and how to use it appropriately. But it also highlights that “AI for business” courses are often very expensive and hard to separate from the mass of low quality courses aimed at would-be coders rather than leaders.
To bridge the gap, AI Governance Limited has today released the first in a series of online courses for leaders as part of its mission to inspire organisations to use AI with wisdom and integrity. For every 10 places sold on the new Executive Education course “AI for Leaders – the Essentials”, AI Governance Limited will give one free place on the course to a leader from the not-for-profit sector.
