AI GUIDE FOR BOARDS IN SINGAPORE
Section I: The Board Mandate
Chapter 3: The AI-Ready Board
Boards must evolve their governance capabilities, structures and approach to keep pace with the evolving AI landscape. Unlike traditional enterprise risks such as nancial or operational hazards, where the primary goal is risk minimisation, AI presents a unique paradox. AI simultaneously represents a signi cant strategic opportunity and source of competitive advantage, while it also poses a complex and systemic threat. An overly risk-averse posture can jeopardise an organisation’s competitive edge just as much as unchecked deployment.
Building AI-ready boards requires more than technical awareness. It requires: • Clear governance mandates. • Su cient AI literacy.
• Appropriate board composition. • E ective committee oversight. • Continuous learning.
Boards should ensure that the pace of AI adoption remains aligned with the organisation’s ability to govern AI responsibly, securely and sustainably.
3.1 Board Roles and Responsibilities
3.1.1 Board responsibilities
Eective AI governance begins with clear delineation of responsibilities between boards and management. Boards should avoid excessive operational involvement in day-to-day AI deployment decisions. At the same time, an overly passive approach would limit meaningful oversight.
e board’s role is primarily strategic and governance-oriented, while management remains responsible for operational execution. Key responsibilities for Board Oversight of AI fall into three categories: • Strategy and value creation. • Governance and guardrails. • Oversight and accountability.
30
Made with FlippingBook Digital Proposal Creator