Before you know it, all the winter frost will be gone and summer will be in full swing…
Speaking of “swing,” nothing screams summer in Florida like a rope swing at a spring or river. In a spring, the water is clear, so you can see what you’re jumping into. However, in a river, at least where I live, you can’t see below the water’s surface.
It’s anyone’s guess what’s down there, which is why it’s important to scout the waters before jumping in. The last thing you want on a fun summer day is a trip to the ER (or worse) because you jumped onto a submerged tree or some rocks.
AI bears a lot of resemblance to this situation…
There’s no shortage of excitement around this fast-growing technology. Just like the potential to have loads of fun with the rope swing, the opportunities for AI seem endless, especially if you only read what its ardent proponents say.
However, like the Spiderman famous quote, “With great power comes great responsibility,” in the case with AI, opportunity comes with risk. In both the case of our rope swing example and AI, risks can be obvious or lurk just below the surface out of sight. Regardless of their source, these risks can spell doom for your organization if they are not addressed at a level appropriate for your organization.
Commentary about AI runs the spectrum.
Examples on the pro-AI, or pro-acceleration side of the coin, include futurist and lead Researcher and AI Visionary at Google Ray Kurzweil, who envisions:
“…a positive future where we merge with machines and attain unimaginably high levels of intelligence and ability, a world where we can enjoy new, meaningful kinds of work and creativity beyond our wildest dreams.”
On the opposite side of this spectrum are those who not only urge people to stay away from AI, but actively try and get governments to severely curtail it or ban it outright. One of their chief concerns is jobs but also the impacts on human connection.
And then there’s OpenAI founder and CEO Sam Altman, who is certainly a proponent but who straddles both sides of this fence when he says:
“I think it’s weird when people think it’s like a ‘big dunk’ that I say I’m a little bit afraid. And I think it’d be crazy not to be a little bit afraid, and I empathize with people who are a lot afraid.”
Regardless of the differing perspectives out there, one thing is certain about AI: unlike other ‘niche’ inventions, AI will touch just about every facet of human existence, up to and including how we even perceive reality according to some.
The role of ERM is not to be a naysayer, but instead a facilitator to help the organization enjoy the benefits of AI while addressing appropriate risks in the most meaningful way.
We have discussed AI before from both a regulatory perspective and how ERM itself can harness it.
The purpose of today’s article is to briefly discuss how ERM can be brought in to help management understand opportunities and risks of both perspectives – adopting AI or foregoing AI – to help inform which direction company leaders should take.
As with any type of innovation or idea, whether it’s a new machine or process, the tendency is for company leaders to make assumptions that everything will work out. In their zeal, they fail to fully consider ‘what-ifs’ and downstream implications. The benefits tend to be exaggerated while the risks are understated or grossly underestimated.
This is a dangerous place for a company to be, even in a pre-AI world.
ERM shouldn’t be a naysayer in a situation like this, but instead a voice of reason without adding bureaucracy.
There’s no one-size-fits-all in this situation.
The risks of adopting AI will be different for every company, as well as the level of risk associated with pursuing the opportunities. It’s the role of ERM to help the company’s leadership understand downstream implications of both adopting and NOT adopting AI so they can make informed decisions on how to proceed. Scenario planning can be used to understand what “it” will mean for the company if X happens.
Also, if company leaders plan to pass on AI (for now), they need to have a deep understanding of the consequences of this decision, especially as it relates to competitive advantage, even if the organization is a not-for-profit or governmental organization.
Helping management navigate these uncharted waters in an intentional way can help ensure both the opportunities of AI and its risks balance out for the good of the company.
New eBook provides an in-depth look at the opportunities, risks, and action steps companies should take when considering AI.
Published in partnership with Origami Risk, this quick guide provides specific examples for the insurance industry, but the basic concepts presented are applicable regardless of industry, especially the steps companies should take when considering and possibly adopting AI (…or not).
Click the image below to grab your copy today…
There’s no doubt as to the revolutionary potential AI holds on the level of impacts of the printing press, the internal combustion engine, or personal computer. And this potential is not limited to a specific industry or function, but rather applies to wide swaths of our society, not only in how we work, but how we even interpret information.
What specific opportunities await your company should it decide to adopt AI?
To share your thoughts on this exciting new frontier, please join the conversation on LinkedIn.
If your company leaderships is considering the adoption of AI, but they are struggling to decide and execute in a methodical way that balances opportunities and risks, reach out to discuss your concerns and potential paths forward.
