Directors Guide to AI Governance Australia

The AICD has partnered with the Human Technology Institute (HTI) at the University of Technology Sydney to develop a suite of practical resources to assist boards in navigating the ethical and informed use of AI. The AICD/HTI resources are designed “to provide practical guidance for boards and directors of organisations that are using or planning to use AI systems (as distinct from developers and distributors of AI systems).” Therefore, the primary target audience of the resources are directors of ASX300 entities who are considering deploying AI.

The suite includes clear and practical guidance on:

• a Director’s Introduction to AI which gives a preliminary overview of foundational knowledge of key AI concepts and issues for those new to AI. It explores three key themes. Chapter 1 explores Al and the relevance for directors. Chapter 2 outlines AI opportunities and risks and Chapter 3 ends with the current obligations and the evolving regulatory landscape.
   
• the Director’s Guide to AI Governance which outlines eight elements of effective, safe and responsible AI governance summarised into a concise Snapshot. The Director’s Guidealso provides key questions for directors and management responses to watch out for, and provides some case studies while the concise snapshot sets outelements of effective, safe and responsible AI governance, which include, practices, process and controls, stakeholder engagement and impact assessments, supporting infrastructure and monitoring, reporting and evaluation.
   
• a governance checklist for small and medium enterprises (SME) and non-for-profit (NFP) organisations which sets out suggested steps for AI governance at 3 key stages of the AI governance lifecycle, 1. Foundations, 2. Building and 3. Continuous development.

While these resources are not intended to ‘cover the field’, they provide much-needed suggestions around board oversight of AI use and are expected to support directors in exercising care and diligence with respect to their oversight of AI risks and opportunities – in alignment with their broader directors’ duties.

Generative AI has served as a catalyst for widespread discussion of its impact on the economy, especially as it promises significant productivity and economic gains. However, there are potential risks from the failures and abuse of AI systems, therefore there are new considerations around organisational strategy and risk management. In this landscape, directors play a key role in creating appropriate safeguards to effectively harness AI’s benefits, which necessarily involves robust and adaptable governance frameworks that can accommodate the unique attributes of AI systems.