Business and Money Tips

The Board Will Never Catch Up with AI — And It Doesn't Have To To Govern AI, Understand the Humans Who Use It AI is advancing faster than most boards can possibly follow. By the time directors understand today's AI, tomorrow's technology has arrived. So how can a board govern something it struggles to keep up with? Perhaps we are asking the wrong question. Boards don't need to understand AI better than the technologists. They need to understand humans better than the technology. Because ultimately, one of the biggest risks of AI is not simply what AI can do. It is what humans will choose to do with it. The Real AI Risk May Be Human Imagine management presents an AI-generated forecast showing that a major investment will deliver excellent returns. The board could ask:  "How accurate is the AI model?" Important question. But perhaps the more important questions are: Who chose the assumptions? Is management using AI to challenge its thinking, or to justify a deci...

Brakes to Go Faster in Corporate Governance What allows a Ferrari to go fast? A powerful engine?  Of course.  But would you dare to drive at 200 kilometres per hour if the car had no or ineffective brakes ?  Probably not. In fact, the faster the car, the more important the brakes become. Good brakes don't make the car slower. Good brakes give you the confidence to go faster. And that is exactly how I see corporate governance . Many businesspeople think governance is there to slow them down.  More rules, approvals, questions, paperwork. I see it differently. Corporate governance is the brakes that allow a business to go faster and safely. And when governance fails, even a powerful company can crash. Let me give you a Singapore example. Many of us remember Hyflux Limited .  At one time, Hyflux was one of Singapore's great entrepreneurial success stories.  Started in 1989, i t grew from a small water-treatment business into an international comp...