Daniel Forman and Regina Sam Penti Author Article on AI and Corporate Board Governance in Bloomberg Law

Ropes & Gray capital markets partner Daniel Forman and IP transactions partner Regina Sam Penti published an article in Bloomberg Law Dec. 1 that lays out the considerations companies and their boards should take as they incorporate AI into their operations, products and services.

The authors noted there is a significant divide between a company's adoption of AI technology and the board's readiness to oversee its use, as indicated in several surveys.

A 2022 IoD members’ survey revealed that over 86% of businesses already use some form of AI without the board knowing, and that 80% of boards did not have a process in place to audit their use of AI and did not know what questions to ask. Furthermore, NACD 2023 survey data concluded that 95% of directors believe AI will impact their business in some way in the next year, yet only 28% of directors reported having AI as a regular feature in board meetings.

Corporate directors must effectively execute their oversight roles to ensure that they can grow and preserve shareholder value as the use of AI technology becomes more widespread, Daniel and Regina wrote.