In this article, The Importance of Good Corporate Governance for ESG and AI, Guy Carpenter’s Robert Bentley, CEO, Global Strategic Advisory, describes corporate commitments to creating a culture that is diverse, equitable and inclusive, how ESG (environmental, social and corporate governance) principles have developed and evolved, and how it is the ideal time to develop robust corporate governance and risk management practices to guide companies through their digital journey.
With artificial intelligence (AI) can come algorithmic bias. This is a material corporate governance issue, especially from a regulatory perspective. Regulators are going to require transparency and hold companies accountable for:
- Mitigating or eliminating both algorithmic and data bias.
- Establishing and adhering to a set of best practices for documentation, fail-back mechanisms, logs, testing, vetting of raw data and continuous monitoring.
- Continually monitoring outputs as well as what the machine is learning.
- Developing a robust audit plan that includes independent third-party audits and board-level reporting.
Guy Carpenter provides value-added, pragmatic solutions to help clients steer their businesses toward achieving strategic goals.
Importance of Good Corporate Governance for ESG, AI
With the right corporate governance tools and risk management models, AI can safely realize its promise and help companies achieve their ESG objectives, improve operations and revolutionize underwriting.