AI Guide For Boards in Singapore

AI GUIDE FOR BOARDS IN SINGAPORE

Section VI: Operationalisation

Step 1: Evaluate strategic alignment

Boards should ensure that AI serves as a business value multiplier rather than a technology distraction. Directors should align and challenge management to articulate the strategic intent of AI initiatives and demonstrate clear alignment with organisational objectives. Key areas for board consideration include: • Applying a horizon view: Classify AI projects into distinct categories. - Eciency – focused on cost reduction and automation. - Productivity – intended to augment workforce eectiveness. - Transformation – creating new business models and revenue streams. • National context: Where relevant, align corporate goals with Singapore’s

National AI Strategy 2.0. Boards should evaluate how the organisation AI strategy can be aligned to the broader national strategy and whether relevant government-supported initiatives, grants or infrastructure programmes can be leveraged. • e “buy vs build” dilemma: Challenge management on whether AI capabilities should be developed in-house or acquired externally. Considerations may include competitive dierentiation, cost and speed of implementation, internal capabilities and resources, and long-term scalability.

Reference Chapter 1: Why Boards Must Lead Chapter 2: e Case For (and Against) AI Chapter 4: Integrating AI into Corporate Strategy

Step 2: Develop governance structures

Governance provides the structural integrity required for AI to scale safely across the enterprise. Without a formal framework, AI adoption remains fragmented and risky. Boards should consider the following: • Adopt governance standards: Organisations should establish structured AI governance practices, including alignment with Singapore’s Model AI Governance Framework. is provides a standardised approach to internal governance, human oversight and operations management. • Board structure: Boards must decide if AI oversight resides within the Audit or Risk Committee, or if the sheer complexity and

strategic importance warrant a dedicated Technology Committee. e appropriate model will depend on organisational complexity and AI maturity. • Accountability and human oversight: Boards should ensure management establishes clear accountability for AI outcomes, particularly where decisions aect customers, employees, safety outcomes or privacy. Human oversight should be clearly dened for material decisions.

Reference Chapter 3: e AI-Ready Board Chapter 7: Board-Led AI Governance

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