Best governance practices for managing AI risk in corporate governance and fiduciary responsibility
Artificial intelligence can amplify productivity, insight, and scale, but it also introduces distinct categories of risk for businesses and investors. These include operational failures, legal and regulatory exposure, ethical harm, cybersecurity vulnerabilities, financial misstatements, and reputational damage. AI risk differs from traditional technology risk because models can behave unpredictably, learn from biased data, and evolve over time without direct human instruction.Effective governance practices do not aim to eliminate AI risk, which is unrealistic, but to identify, measure, monitor, and control it in a way that aligns with corporate strategy and fiduciary responsibility.Board-Level Oversight and AccountabilityEffective governance of artificial intelligence must…







