AI GUIDE FOR BOARDS IN SINGAPORE
Section I: The Board Mandate
1.3. Value Creation and Disruption
Boards must frame AI as a core business capability, integrated into strategy, operations, talent and governance. e Dual Lens of Governance is a balanced approach to Conformance and Performance .
expose the organisation to unacceptable legal, operational and reputational consequences.
Moving beyond “vanity metrics” such as chatbot usage or pilot counts, boards should focus on three core pillars of enterprise value: cost e ciency, revenue acceleration, and risk resilience.
Focusing solely on risk may stie innovation; while focusing solely on opportunity may
The Dual Lens of Governance: Conformance and Performance
Singapore Institute of Directors (SID) advocates a balanced governance approach that addresses both risk oversight and long-term value creation.
Conformance (Risk and Governance)
Performance (Strategy and Value Creation)
Oversee AI ethics, governance and data management to prevent bias and ensure compliance with regulations such as the Personal Data Protection Act (PDPA).
Challenge management to move beyond cost reduction towards business model innovation and competitive dierentiation.
Manage AI-related operational, cyber security and resilience risks.
Identify opportunities where AI can amplify proprietary data, institutional knowledge and core workows. Allocate capital and resources to AI as a core pillar of long-term strategic capability rather than short-term experimentation.
Ensure AI systems do not reinforce bias or discrimination, reducing legal and reputational liabilities.
Establish accountability, oversight and assurance mechanisms for AI deployment.
Position AI as a driver of productivity, revenue growth and enterprise agility.
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