Many parents can relate to this: when we ask our children, “How was school?”, the most likely answer is a brief “Good,” unless we follow up with more profound questions, the conversation ends there.
The same thing happens in boardrooms. If the right questions aren’t asked, it’s difficult to identify what truly matters. In fact, if we look at the major corporate scandals that have taken place in Chile, in all of them it’s evident that key questions were not raised at the governance level.
This becomes even more critical in a constantly evolving environment, where the rise of new technologies — especially artificial intelligence (AI) — challenges companies to stay up to date, so they can both harness its advantages and prevent risks, particularly given the uncertainty around its impact and the incipient state of its regulation due to its rapid development.
At the Women Corporate Directors Global Institute 2024, it was emphasized that in order to turn AI into a competitive advantage — grounded in ethical principles and responsible use — board members must ask themselves: What are the benefits and risks of AI for our company? How are we integrating it into our risk management and compliance programs? Are we prepared for the change? How are our partners or suppliers using it? Are we ensuring transparency, integrity, and data privacy? Are we protecting ourselves from cyberattacks? Are our AI practices clear and accessible to stakeholders? Is our talent and leadership strategy equipped to face this transformation? Are we effectively overseeing AI within our organizational structures? Are we monitoring the changing regulatory landscape? — and many more.
AI holds immense power. That’s why it must be applied responsibly, treated with the same seriousness as other critical matters, and approached from a self-regulatory perspective. Its integration must become a central pillar of corporate governance — led by a board that ensures an ethical and transparent framework, continuously trains on technological advances, designs effective risk management policies, promotes the inclusion of new talent, and cultivates a culture of integrity that allows the company to adapt to ongoing technological change — all while making AI more accessible to strengthen trust in its use.
Integrating AI is essential — but without clear answers to these questions, implementation will fall short. The board has a duty to ensure effective governance, provide strategic vision, and foster a culture that values innovation and responsible use, in order to drive sustainable and ethical growth.
By Susana Sierra, CEO of BH Compliance
Published in El Mercurio
