Exciting, terrifying and valued in trillions – that’s AI

Fearful, scared, curious, excited. The range of emotions run deep when discussing AI and generative AI. Not to mention the threat of computers becoming sentient, or ‘Q-Day’, the moment when quantum computers are expected to crack even the strongest algorithms.

In a dive into AI governance in the summer edition of Boardroom, more than 10 directors/chairs across many sectors and organisations reveal how they are planning for and implementing this revolutionary technology. 

Global tech veteran Anna Curzon MInstD probably sums it up best, saying: “It’s exciting and terrifying in equal parts”. Quoting McKinsey’s finding that AI could generate US$2.6 to US$4.4 trillion in value across industries, the board director and advisor adds: “That is audacious, but it is a reasonable estimate of the size of the prize.” 

Market research shows around two-thirds of Kiwis are nervous about AI, making us one of the most concerned countries globally. New Zealand also has a lower understanding of which products and services are using AI.

With emerging technologies appearing almost overnight, Senior Vice President at Marsh’s Global Cyber Insurance Center Jaymin Kim spends “120 per cent of her time” devoted to the risk impacts of generative AI and “what could possibly go wrong”. 

And that’s a lot, judging by chatbots hallucinating and spewing misinformation and disinformation. There are already plenty of horror stories about the misapplication of AI. 

That is why ethical and responsible practices and boundaries need to be established now to safeguard the future, says Dr Mahsa Mohaghegh (McCauley) MInstD. She warns of the day machines can talk to each other without human intervention.

Recent research by Datacom shows many New Zealand organisations are overlooking or undervaluing the quality of data – a critical component for AI success – with just nine per cent believing their data to be 100 per cent ‘clean’.

Technology consultant and commentator Ben Kepes CFInstD suggests an 80:20 tech-human ratio as a model to achieve desired outcomes and improve efficiency, but warns AI is not the “panacea for all ills”.

What strategy and tools do you need for your organisation? Find out this and more in your award-winning Boardroom, arriving soon in your mail.

And on the back of the inaugural Governing AI Forum in July 2024, we will be holding another one-day forum in Auckland on 19 March 2025 that will help you in governing AI effectively in your organisation. 

The speakers include Privacy Commissioner Michael Webster and Kia Ora AI director Matt Ensor, who also chairs the large language models working group for AI Forum New Zealand.  

To further arm yourself, see A Director’s Guide to AI Board Governance, which includes nine principles to guide oversight in your organisation.