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medium-7 large-9 cell" role="main" data-max-pages="2" data-scroll="true" data-query-type="single" data-post-type="post" data-value="620" data-front="" data-start="15781" data-ppp="1"> <article id="post-15781" class="articles post-15781 post type-post status-publish format-standard has-post-thumbnail hentry category-amazon category-apple category-ai-applications category-artificial-intelligence category-ai-legislation-government category-meta-facebook category-microsoft tag-ai tag-artificial-intelligence tag-ethics" role="article" itemscope itemtype="http://schema.org/BlogPosting" data-title="Use of AI for business governance must improve at the board level" data-url="/news/use-ai-business-governance-must-improve-at-board-level/"> <header class="article-header"> <h1 class="entry-title single-title" itemprop="headline">Use of AI for business governance must improve at the board level</h1> </header> <section class="entry-content" itemprop="text"> <div class="grid-x grid-margin-x margin-top-2"> <div class="cell small-12 medium-12 large-12 margin-bottom-1"> <img width="1440" height="955" src="https://www.artificialintelligence-news.com/wp-content/uploads/2024/08/AI-governance-must-improve-at-board-level-says-Norways-sovereign-fund-scaled-e1724132588354.jpg" class="attachment-full size-full wp-post-image" alt="AI governance must improve at board level, says Norway's sovereign fund" decoding="async" /> </div> <div class="cell small-12 medium-12 large-12 margin-bottom-1"> <div class="author"> <div class="byline" style="text-align:right;padding-right:10px;"> <h3 style="float:left;">About the Author</h3> <span class="by">By <a href="https://www.artificialintelligence-news.com/news/author/muhammadzulhusni/" title="Posts by Muhammad Zulhusni" rel="author" itemprop="author" itemscope="itemscope" itemtype="https://schema.org/Person">Muhammad Zulhusni</a></span> | <time class="entry-date published" datetime="2024-08-20T16:58:43+00:00">August 20, 2024</time> <div class=""> Categories: <a href="https://www.artificialintelligence-news.com/categories/ai-companies/amazon/" title="AI Amazon News. Explore the latest news, insights and use cases on how Amazon is using AI here at AI News.">Amazon</a>, <a href="https://www.artificialintelligence-news.com/categories/ai-companies/apple/" title="AI Apple News. Explore the latest news, insights and use cases on how Apple is using AI here at AI News.">Apple</a>, <a href="https://www.artificialintelligence-news.com/categories/ai-applications/" title="AI Applications News. Explore the latest news and insights on applications for AI technologies here at AI News.">Applications</a>, <a href="https://www.artificialintelligence-news.com/categories/artificial-intelligence/" title="Artificial Intelligence News. Explore the latest news and insights surrounding AI here at AI News.">Artificial Intelligence</a>, <a href="https://www.artificialintelligence-news.com/categories/ai-legislation-government/" title="AI Legislation and Government News. Explore the latest news and insights on government decisions and legislation surrounding AI here at AI News.">Legislation & Government</a>, <a href="https://www.artificialintelligence-news.com/categories/ai-companies/meta-facebook/" title="AI Meta News. Explore the latest news, insights and use cases on how Meta and Facebook are using AI here at AI News.">Meta (Facebook)</a>, <a href="https://www.artificialintelligence-news.com/categories/ai-companies/microsoft/" title="AI Microsoft News. Explore the latest news, insights and use cases on how Microsoft is using AI here at AI News.">Microsoft</a>, </div> </div> <div class="avatar-left" style="width:100%;"> <p style="text-align:justify;display:inline-block;"> <img src="https://www.artificialintelligence-news.com/wp-content/uploads/2024/07/muhammadprof2.jpeg" alt="Use of AI for business governance must improve at the board level" title="Use of AI for business governance must improve at the board level" width="100" style="width:100px;float:left;margin-right:20px;" /> <span class="emg_author_description">As a tech journalist, Zul focuses on topics including cloud computing, cybersecurity, and disruptive technology in the enterprise industry. 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14V8h-4v6H8v4h6v6h4v-6h6v-4h-6z" fill-rule="evenodd"></path></g></svg></span></a></div></div><div style='clear:both'></div> <p>According to Carine Smith Ihenacho, chief governance and compliance officer of Norway’s $1.7 trillion sovereign wealth fund, boards <a href="https://www.reuters.com/technology/artificial-intelligence/companies-need-more-ai-competency-board-level-norways-wealth-fund-says-2024-08-16/">need to be proficient</a> with the use of AI and take control of its application in businesses to mitigate risks.</p> <p>The Norges Bank Investment Fund, which holds considerable shares in almost 9,000 companies worldwide — accounting for 1.5% of all listed stocks — has become a trailblazer in environmental, social, and corporate governance issues. About a year ago, the fund also provided its invested companies with recommendations on integrating responsible AI to improve economic outcomes.</p> <p>Several companies still have a lot of ground to cover. Specifically, when stating that “Overall, a lot of competence building needs to be done at the board level,” Smith Ihenacho clarified that this does not mean every board should have an AI specialist. Instead, boards need to collectively understand how AI matters in their business and have policies in place.</p> <p>“They should know: ‘What’s our policy on AI? Are we high risk or low risk? Where does AI meet customers? Are we transparent around it?’ It’s a big-picture question they should be able to answer,” Smith Ihenacho added, highlighting the breadth of understanding required at the board level.</p> <p>The fund has shared its perspective on AI with the boards of its 60 largest portfolio companies, as reported in its 2023 responsible investment report. It is particularly focused on AI use in the healthcare sector due to its substantial impact on consumers, and is closely monitoring Big Tech companies that develop AI-based products.</p> <p>In its engagement with tech firms, the fund emphasises the importance of robust governance structures to manage AI-related risks. “We focus more on the governance structure,” Smith Ihenacho explained. “Is the board involved? Do you have a proper policy on AI?”</p> <p>The fund’s emphasis on AI governance is particularly relevant, given that nine of the ten largest positions in its equity holdings are tech companies. Leading among them are names such as Microsoft, Apple, Amazon, and Meta Platforms. Investments in these companies contributed to a 12.5% growth in the fund’s stock portfolio in the first half of 2024. The overall exposure to the tech sector increased from 21% to 26% over the past year, now comprising a quarter of the stock portfolio. This underscores the significant role that technology and AI play in the world today.</p> <p>Though the fund favours AI innovation for its potential to boost efficiency and productivity, Smith Ihenacho has emphasised the importance of responsible use. She is quoted as saying, “It is fantastic what AI may be able to do to support innovation, efficiency, and productivity… we support that.” However, she also stressed the need to be responsible in how we manage the risks.</p> <p>The fund’s adoption of AI governance aligns with rising global concerns about the ethical implications and potential dangers of these technologies. AI is increasingly utilised across various sectors, from finance to healthcare, and the need for governance frameworks has never been greater. The Norwegian sovereign wealth fund maintains a standard that requires companies to develop comprehensive AI policies at the board level, fostering the adoption of responsible AI practices across its large portfolio.</p> <p>This initiative by one of the world’s largest investors could have far-reaching implications for corporate governance practices globally. As companies seek to harness the power of AI while navigating its complexities, the guidance provided by influential investors like Norges Bank Investment Fund may serve as a blueprint for responsible AI implementation and governance in the corporate world.</p> <p><strong>See also: <a target="_blank" href="https://www.artificialintelligence-news.com/news/x-agrees-halt-use-certain-eu-data-ai-chatbot-training/" rel="noreferrer noopener">X agrees to halt use of certain EU data for AI chatbot training</a></strong></p> <figure class="wp-block-image size-full"><a href="https://www.ai-expo.net/"><img decoding="async" width="728" height="90" src="https://www.artificialintelligence-news.com/wp-content/uploads/2022/04/ai-expo-world-728x-90-01.png" alt="" class="wp-image-11874" srcset="https://www.artificialintelligence-news.com/wp-content/uploads/2022/04/ai-expo-world-728x-90-01.png 728w, https://www.artificialintelligence-news.com/wp-content/uploads/2022/04/ai-expo-world-728x-90-01-300x37.png 300w, https://www.artificialintelligence-news.com/wp-content/uploads/2022/04/ai-expo-world-728x-90-01-380x47.png 380w, https://www.artificialintelligence-news.com/wp-content/uploads/2022/04/ai-expo-world-728x-90-01-350x43.png 350w, https://www.artificialintelligence-news.com/wp-content/uploads/2022/04/ai-expo-world-728x-90-01-100x12.png 100w, https://www.artificialintelligence-news.com/wp-content/uploads/2022/04/ai-expo-world-728x-90-01-60x7.png 60w" sizes="(max-width: 728px) 100vw, 728px" /></a></figure> <p><strong>Want to learn more about AI and big data from industry leaders?</strong> Check out<a href="https://www.ai-expo.net/"> AI & Big Data Expo</a> taking place in Amsterdam, California, and London. The comprehensive event is co-located with other leading events including <a href="https://intelligentautomation-conference.com/northamerica/">Intelligent Automation Conference</a>, <a href="https://www.blockchain-expo.com/">BlockX</a>,<a href="https://digitaltransformation-week.com/"> Digital Transformation Week</a>, and <a href="https://www.cybersecuritycloudexpo.com/">Cyber Security & Cloud Expo</a>.</p> <p>Explore other upcoming enterprise technology events and webinars powered by TechForge <a href="https://techforge.pub/events/">here</a>.</p> <p class="tags"><span class="tags-title">Tags:</span> <a href="https://www.artificialintelligence-news.com/news/tag/ai/" rel="tag">ai</a>, <a href="https://www.artificialintelligence-news.com/news/tag/artificial-intelligence/" rel="tag">artificial intelligence</a>, <a href="https://www.artificialintelligence-news.com/news/tag/ethics/" rel="tag">ethics</a></p> </div> </div> </section> <section class="comments-section"> <div class="grid-x grid-margin-x margin-top-2"> <div class="cell small-12 medium-4 large-4 large-offset-4"> <div class="button btn full-width view-comments">View Comments</div> </div> <div class="cell small-12 medium-4 large-4"> <div class="button invert btn full-width leave-comment">Leave a comment</div> </div> <div class="cell small-12 medium-8 large-8 large-offset-4"> <div id="comments" class="comments-area"> <div id="respond" class="comment-respond"> <h3 id="reply-title" class="comment-reply-title">Leave a Reply <small><a rel="nofollow" id="cancel-comment-reply-link" href="/news/use-ai-business-governance-must-improve-at-board-level/#respond" style="display:none;">Cancel reply</a></small></h3><p class="must-log-in">You must be <a href="https://www.artificialintelligence-news.com/wp-login.php?redirect_to=https%3A%2F%2Fwww.artificialintelligence-news.com%2Fnews%2Fuse-ai-business-governance-must-improve-at-board-level%2F">logged in</a> to post a comment.</p> </div> </div> </div> </div> </section> <footer class="article-footer"> </footer> </article> </main> <div id="sidebar" class="sidebar small-12 medium-5 large-3 cell" role="complementary"> <div id="techforge-subscribe-widget-3" class="widget techforge-subscribe-widget"> <div class="grid-x subscribe-widget"> <h4 class="widgettitle">Join our community</h4> <h5>Create your free account now to access all our premium content and recieve the latest tech news to your inbox.</h5> <button class="button"><span class="login-switch">SUBSCRIBE NOW<span></button> </div> </div><div id="techforge-post-types-5" class="widget techforge-post-types"><h4 class="widgettitle">LATEST ARTICLES</h4> <div class="posts-block"> <div class="grid-x grid-margin-x"> <div class="small-3 medium-4 large-4 cell thumb-holder"> <a href="https://www.artificialintelligence-news.com/news/uk-establishes-lasr-counter-ai-security-threats/" title="UK establishes LASR to counter AI security threats" class="img-link"><img width="150" height="150" src="https://www.artificialintelligence-news.com/wp-content/uploads/2024/11/uk-counter-emerging-ai-security-threats-cyber-security-infosec-hacking-cybersecurity-government-150x150.jpg" class="attachment-thumbnail size-thumbnail wp-post-image" alt="Shields illustrating the UK establishing a new lab to counter emerging AI security threats as part of broader cybersecurity efforts to protect Britain, NATO, and its allies from emerging cybersecurity risks." decoding="async" loading="lazy" srcset="https://www.artificialintelligence-news.com/wp-content/uploads/2024/11/uk-counter-emerging-ai-security-threats-cyber-security-infosec-hacking-cybersecurity-government-150x150.jpg 150w, https://www.artificialintelligence-news.com/wp-content/uploads/2024/11/uk-counter-emerging-ai-security-threats-cyber-security-infosec-hacking-cybersecurity-government-125x125.jpg 125w, https://www.artificialintelligence-news.com/wp-content/uploads/2024/11/uk-counter-emerging-ai-security-threats-cyber-security-infosec-hacking-cybersecurity-government-300x300.jpg 300w, https://www.artificialintelligence-news.com/wp-content/uploads/2024/11/uk-counter-emerging-ai-security-threats-cyber-security-infosec-hacking-cybersecurity-government-400x400.jpg 400w, https://www.artificialintelligence-news.com/wp-content/uploads/2024/11/uk-counter-emerging-ai-security-threats-cyber-security-infosec-hacking-cybersecurity-government-600x600.jpg 600w" sizes="auto, (max-width: 150px) 100vw, 150px" /></a> </div> <div class="cell small-9 medium-8 large-8 title-holder"> <a href="https://www.artificialintelligence-news.com/news/uk-establishes-lasr-counter-ai-security-threats/"><h3 itemprop="headline">UK establishes LASR to counter AI security threats</h3> </a> <div class="byline"> <a href="https://www.artificialintelligence-news.com/categories/ai-security/" title="AI Security News. 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value='Mayotte' >Mayotte</option><option value='Mexico' >Mexico</option><option value='Micronesia' >Micronesia</option><option value='Moldova' >Moldova</option><option value='Monaco' >Monaco</option><option value='Mongolia' >Mongolia</option><option value='Montenegro' >Montenegro</option><option value='Montserrat' >Montserrat</option><option value='Morocco' >Morocco</option><option value='Mozambique' >Mozambique</option><option value='Myanmar' >Myanmar</option><option value='Namibia' >Namibia</option><option value='Nauru' >Nauru</option><option value='Nepal' >Nepal</option><option value='Netherlands' >Netherlands</option><option value='New Caledonia' >New Caledonia</option><option value='New Zealand' >New Zealand</option><option value='Nicaragua' >Nicaragua</option><option value='Niger' >Niger</option><option value='Nigeria' >Nigeria</option><option value='Niue' >Niue</option><option value='Norfolk Island' >Norfolk Island</option><option value='North Korea' >North Korea</option><option value='Northern Mariana Islands' >Northern Mariana Islands</option><option value='Norway' >Norway</option><option value='Oman' >Oman</option><option value='Pakistan' >Pakistan</option><option value='Palau' >Palau</option><option value='Palestine, State of' >Palestine, State of</option><option value='Panama' >Panama</option><option value='Papua New Guinea' >Papua New Guinea</option><option value='Paraguay' >Paraguay</option><option value='Peru' >Peru</option><option value='Philippines' >Philippines</option><option value='Pitcairn' >Pitcairn</option><option value='Poland' >Poland</option><option value='Portugal' >Portugal</option><option value='Puerto Rico' >Puerto Rico</option><option value='Qatar' >Qatar</option><option value='Romania' >Romania</option><option value='Russia' >Russia</option><option value='Rwanda' >Rwanda</option><option value='Réunion' >Réunion</option><option value='Saint Barthélemy' >Saint Barthélemy</option><option value='Saint Helena' >Saint Helena</option><option value='Saint Kitts and Nevis' >Saint Kitts and Nevis</option><option value='Saint Lucia' >Saint Lucia</option><option value='Saint Martin' >Saint Martin</option><option value='Saint Pierre and Miquelon' >Saint Pierre and Miquelon</option><option value='Saint Vincent and the Grenadines' >Saint Vincent and the Grenadines</option><option value='Samoa' >Samoa</option><option value='San Marino' >San Marino</option><option value='Sao Tome and Principe' >Sao Tome and Principe</option><option value='Saudi Arabia' >Saudi Arabia</option><option value='Senegal' >Senegal</option><option value='Serbia' >Serbia</option><option value='Seychelles' >Seychelles</option><option value='Sierra Leone' >Sierra Leone</option><option value='Singapore' >Singapore</option><option value='Sint Maarten' >Sint Maarten</option><option value='Slovakia' >Slovakia</option><option value='Slovenia' >Slovenia</option><option value='Solomon Islands' >Solomon Islands</option><option value='Somalia' >Somalia</option><option value='South Africa' >South Africa</option><option value='South Georgia' >South Georgia</option><option value='South Korea' >South Korea</option><option value='South Sudan' >South Sudan</option><option value='Spain' >Spain</option><option value='Sri Lanka' >Sri Lanka</option><option value='Sudan' >Sudan</option><option value='Suriname' >Suriname</option><option value='Svalbard and Jan Mayen Islands' >Svalbard and Jan Mayen Islands</option><option value='Sweden' >Sweden</option><option value='Switzerland' >Switzerland</option><option value='Syria' >Syria</option><option value='Taiwan' >Taiwan</option><option value='Tajikistan' >Tajikistan</option><option value='Tanzania' >Tanzania</option><option value='Thailand' >Thailand</option><option value='Timor-Leste' >Timor-Leste</option><option value='Togo' >Togo</option><option value='Tokelau' >Tokelau</option><option value='Tonga' >Tonga</option><option value='Trinidad and Tobago' >Trinidad and Tobago</option><option value='Tunisia' >Tunisia</option><option value='Turkey' >Turkey</option><option value='Turkmenistan' >Turkmenistan</option><option value='Turks and Caicos Islands' >Turks and Caicos Islands</option><option value='Tuvalu' >Tuvalu</option><option value='US Minor Outlying Islands' >US Minor Outlying Islands</option><option value='Uganda' >Uganda</option><option value='Ukraine' >Ukraine</option><option value='United Arab Emirates' >United Arab Emirates</option><option value='Uruguay' >Uruguay</option><option value='Uzbekistan' >Uzbekistan</option><option value='Vanuatu' >Vanuatu</option><option value='Venezuela' >Venezuela</option><option value='Vietnam' >Vietnam</option><option value='Virgin Islands, British' >Virgin Islands, British</option><option value='Virgin Islands, U.S.' >Virgin Islands, U.S.</option><option value='Wallis and Futuna' >Wallis and Futuna</option><option value='Western Sahara' >Western Sahara</option><option value='Yemen' >Yemen</option><option value='Zambia' >Zambia</option><option value='Zimbabwe' >Zimbabwe</option><option value='Åland Islands' >Åland Islands</option></select></div></div><div id="field_8_27" class="gfield gfield--type-select region populate personal gfield_contains_required field_sublabel_below gfield--no-description field_description_below field_validation_below gfield_visibility_visible" data-js-reload="field_8_27" ><label class='gfield_label gform-field-label' for='input_8_27'>Region<span class="gfield_required"><span class="gfield_required gfield_required_asterisk">*</span></span></label><div class='ginput_container ginput_container_select'><select name='input_27' id='input_8_27' class='large gfield_select' aria-required="true" aria-invalid="false" ><option value='' selected='selected' class='gf_placeholder'>Region</option><option value='asia-pacific' >Asia-Pacific</option><option value='central-south-america' >Central & South America</option><option value='europe' >Europe</option><option value='middleeast-africa' >Middle East & Africa</option><option value='north-america' >North America</option></select></div></div><div id="field_8_18" class="gfield gfield--type-section gsection company field_sublabel_below gfield--no-description field_description_below field_validation_below gfield_visibility_visible" data-js-reload="field_8_18" ><h3 class="gsection_title">Company Details</h3></div><div id="field_8_10" class="gfield gfield--type-text company gfield_contains_required field_sublabel_below gfield--no-description field_description_below field_validation_below gfield_visibility_visible" data-js-reload="field_8_10" ><label class='gfield_label gform-field-label' for='input_8_10'>Company Name<span class="gfield_required"><span class="gfield_required gfield_required_asterisk">*</span></span></label><div class='ginput_container ginput_container_text'><input name='input_10' id='input_8_10' type='text' value='' class='large' aria-required="true" aria-invalid="false" /></div></div><div id="field_8_11" class="gfield 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class='ginput_container ginput_container_select'><select name='input_26' id='input_8_26' class='large gfield_select' aria-required="true" aria-invalid="false" ><option value='' selected='selected' class='gf_placeholder'>Job Type</option><option value='founder-partner' >Founder / Partner</option><option value='cxo' >CxO</option><option value='director' >Director</option><option value='vp' >VP</option><option value='senior-manager' >Senior Manager</option><option value='manager' >Manager</option><option value='developer' >Developer</option><option value='other' >Other</option></select></div></div><div id="field_8_8" class="gfield gfield--type-phone personal gfield_contains_required field_sublabel_below gfield--no-description field_description_below field_validation_below gfield_visibility_visible" data-js-reload="field_8_8" ><label class='gfield_label gform-field-label' for='input_8_8'>Phone<span class="gfield_required"><span class="gfield_required 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Research</option><option value='enterprise-sme' >Enterprise / SME</option><option value='investor-vc' >Investor / VC</option><option value='press-media' >Press / Media</option><option value='public-sector' >Public Sector</option><option value='service-provider' >Service Provider</option><option value='startup' >Start-up</option><option value='system-integrator' >System Integrator</option><option value='technology-solution-provider' >Technology Solution Provider</option></select></div></div><div id="field_8_16" class="gfield gfield--type-select company populate industry gfield_contains_required field_sublabel_below gfield--no-description field_description_below field_validation_below gfield_visibility_visible" data-js-reload="field_8_16" ><label class='gfield_label gform-field-label' for='input_8_16'>Industry<span class="gfield_required"><span class="gfield_required gfield_required_asterisk">*</span></span></label><div class='ginput_container ginput_container_select'><select name='input_16' id='input_8_16' class='large gfield_select' aria-required="true" aria-invalid="false" ><option value='' selected='selected' class='gf_placeholder'>Select Industry</option><option value='automotive-transport-logistics' >Automotive / Transport / Logistics</option><option value='built-environment' >Built Environment (Inc Real Estate, Construction, Facilities and Cities)</option><option value='business-functions' >Business Functions (Inc Marketing, HR)</option><option value='communications' >Communications (Inc Telcos, 5G)</option><option value='consultancy-advisor-research' >Consultancy / Advisor / Research</option><option value='consumer-goods-retail' >Consumer Goods / Retail</option><option value='financial-services' >Financial services (Inc Banking, Insurance)</option><option value='healthcare' >Healthcare (Inc Pharma)</option><option value='it-services' >IT Services</option><option value='manufacturing-supplychain' >Manufacturing / Supply Chain</option><option value='media-pr' >Media / PR (Inc Government, NfP, Education, Defence)</option><option value='platforms' >Platforms (inc Software, Hardware, Web, Cloud)</option><option value='public-sector' >Public Sector (Inc Government, NfP, Education, Defence)</option><option value='regulation-compliance-law' >Regulation / Compliance / Law</option><option value='utilities-energy' >Utilities / Energy</option></select></div></div><div id="field_8_19" class="gfield gfield--type-section gsection account field_sublabel_below gfield--no-description field_description_below field_validation_below gfield_visibility_visible" data-js-reload="field_8_19" ><h3 class="gsection_title">Account Details</h3></div><div id="field_8_13" class="gfield gfield--type-email account gfield_contains_required field_sublabel_below gfield--no-description field_description_below field_validation_below gfield_visibility_visible" data-js-reload="field_8_13" ><label class='gfield_label gform-field-label' for='input_8_13'>Email<span 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