Interview with Thomas Steiner

swissVR Monitor: As a proven expert in AI, you have mandates on Boards across different sectors. What is the role of Boards generally in relation to generative AI? And what responsibilities do they have?

Thomas Steiner: Boards have a very varied role. AI is transforming jobs and sectors across the economy, so Boards need to define a clear strategy for integrating it at all levels within the company. The Board needs to be able to identify the opportunities offered by AI that align with the company’s corporate goals. And because generative AI is a real game-changer, they need to adapt their company’s corporate strategy to the new reality. The ethical and security aspects of transformation driven by AI were already part of the governance role but are now throwing up many new challenges and responsibilities that need to be managed effectively.

swissVR Monitor: So do Boards need a dedicated committee to deal with (generative) AI? Or do you see it rather as a sub-topic for an existing committee – the Innovation Committee, say, or the Digitalisation Committee?

Thomas Steiner: They need both! In terms of integrating AI into the operation of a company, an Innovation Committee or Digitalisation Committee can be the driving force for change. But AI also offers scope to transform a company’s governance strategically. I predict that Boards will very soon be appointing members with skills in the area of AI – ‘Board bot masters’, as I call them – who are able to make AI an integral part of Board decision-making. These individuals also join up the strategic challenges of oversight, risk management, transparency, communication and training.

swissVR Monitor: Our survey findings show that the majority of Board members feel their Board does not take the time it needs to tackle the issue of generative AI. How do you explain this mismatch between the importance of the topic and the time Boards devote to it? And how can the gap be bridged?

Thomas Steiner: AI is revolutionising technology scouting tools. Nobody saw that wave coming, but once ChatGPT was launched globally in November 2022, companies adopted it at operational level without the governance level even anticipating, let alone recognising, its transformative potential. And that is the hallmark of a rare paradigm shift: different occupations immediately appropriate a new tool and make it their own. I see only one way forward: every member of a Board of Directors absolutely has to invest the time to work with AI tools. The time they invest in learning and harnessing AI will then reap benefits in terms of greater efficiency and process optimisation. And understanding and managing this powerful tool will not only increase their understanding of the challenges but also improve strategic decision-making.

swissVR Monitor: The overwhelming majority of Swiss Board members surveyed say that their Board does not receive regular reports from management on the use of generative AI in the company. What do you think adequate management reporting in this area looks like?

Thomas Steiner: The best reporting takes the form of documented specific case studies – examples of best practice. The scale of the transformation that is under way and the pace at which generative AI is now developing mean it makes no sense to be commissioning wide-ranging reports: they are out of date before they even land on Board members’ desks or in their inbox. But the Board must not be passive: it, too, must be proactive in mastering AI tools to gain an understanding of their impact and potential. On a day-to-day basis, management should be following the trends in the AI transformation and report to the Board on specific developments. Future-oriented technology reports focusing on specific tools or roles are not very helpful, in my view.

swissVR Monitor: What are your expectations for how new versions of generative AI tools, like ChatGPT, will change or facilitate the work of Boards over the next few years?

Thomas Steiner: These tools have already started to transform the work of Boards and Board members. For example, they are starting to merge with office software to facilitate administrative and repetitive tasks. But that’s far from all they can do. I know of organisations that are already making using AI to analyse, design and pilot business models. Boards that use AI services make decisions differently in terms of both the breadth and the depth of decision-making. AI can offer additional insights and more in-depth analysis for management and enrich decision-making and strategy.

swissVR Monitor: So how can Boards of Directors ensure that their strategic plans keep pace with the latest developments in generative AI?

Thomas Steiner: By appointing a ‘Board bot master’, they can ensure that training reaches all levels and that best practice feeds into governance. In today’s fast-paced world, lateral strategies are crucial. Effectively harnessing AI cannot be achieved simply by incrementally adapting your structures; it needs a parallel and complementary ecosystem, and time will tell whether that will replace existing structures and roles. But that isn’t the key question right now. Instead, we need to decide how these structures and roles can be transformed at pace. My view is that this powerful tool has really earned its place in any serious corporate strategy.