Capturing the Benefits While Managing the Risks of Generative AI Technologies

There is tremendous excitement surrounding the release of the latest artificial intelligence (AI) tools, such as OpenAI’s ChatGPT and organizations are exploring all kinds of ways they may be able to leverage the tremendous advantages offered by these powerful tools.

Benefits of AI

The potential efficiencies that might be available by using generative AI to do difficult and time-consuming tasks, such as conducting research on a topic or entity, reviewing and summarizing large contracts or other complex documents, or crafting proposed solutions to complex business problems may create huge, untapped strategic advantages for all kinds of organizations.

Risks of AI

In these early days of exploration, many business leaders are “test driving” the generative AI capabilities by asking these tools to review critical documents and files to see how well the AI performs.  But in doing so, they may be actually allowing their confidential documents to become part of the “public sources” AI uses to learn and improve.  While the benefits can be eye-popping, it is important that business leaders not naively overlook potential risks that may far outweigh the return offered by AI.

In this thought paper, Capturing the Benefits While Managing the Risks of Generative AI Technologies, Don Pagach highlights important considerations for executives as they seek to balance the benefits and accompanying risks associated with AI.  He highlights some of the available frameworks that business leaders can use to frame their processes for managing risks in a way that allows them to also garner some of the exciting advantages offered by AI.

To learn more about navigating enterprise-wide risks in today’s rapidly changing business environment, visit our ERM Resource Center.