Promise or Peril? Artificial Intelligence and the Future of Corporate Governance

In a world of accelerating digitalization and disruption, Salzburg Global Seminar’s 2023 Corporate Governance Forum explored the complex geopolitical considerations and risks posed by AI and whether corporations should (or must) adopt artificial intelligence (AI) approaches in their corporate oversight functions and in their business operations, internal governance and management of human capital. Participants in the Forum addressed the opportunities and risks of artificial intelligence for corporate governance, what this means for the future of work following the pandemic, AI’s role in, and impact (if any) on, ESG, stakeholder governance and corporate purpose, and lessons learned from other examples of disruptive technological change and accompanying societal developments, including their effect on corporate governance, oversight, and risk management.

While AI clearly presents an opportunity to improve corporate decision-making, operations, oversight, sustainability and reporting, will the widespread use of AI increase vulnerability to cyberattacks and instability, reinforce discrimination and biases, and risk losing control of privacy and critical corporate assets? What can be learned from companies that have rushed to invest in AI capabilities before they are prepared to use them effectively? What might be learned from previous examples of rapid technological and social disruption and the risks, opportunities, and potential impact on board duties and the delivery of corporate and social value?

In addition to the technological and operational challenges posed by AI, corporations around the world are facing difficult and complicated strategic questions about the geopolitical, infrastructure, and cyber risks posed by AI and the potential long-term risks of the “decoupling” and “regionalization” of digital infrastructure.

Date

Oct 04 - Oct 06, 2023

Session no.

S807-01

Location

Schloss Leopoldskron, Salzburg, Austria

Contact

Benjamin Glahn

Deputy CEO and Managing Director, Programs

Antonio Riolino

Senior Program Manager

Content overview

Key Questions and Issues Participant profile FEES Partners Sponsors

Key Questions and Issues

Geo-politics: As boards navigate the geopolitical dynamics that will be so central to future business strategies and board decision making, will companies and directors be forced to “take sides” in this decoupling? What strategies can corporations and directors take to strike a balance between technical and political risk? How can directors best navigate a broader set of strategic geopolitical considerations that are raised by AI?

Governance: As the use of AI reshapes companies and societies and puts powerful new tools in the hands of directors, shareholders, and stakeholders, will there be an obligation on the part of boards to employ those tools now or in the future? Will boards require management to utilize AI? How will boards ensure that there is sufficient oversight on the use and potential misuse of AI itself, and will this compel boards of directors to have more members with AI sophistication and expertise?

Business Operations: Will AI help companies analyze internal data to predict where there may be compliance failures, culture problems, and other management challenges? Or, will the use of AI have unintended consequences on human capital management, supply chain stability and outsourcing, and sustainability goals? For example, will AI favor major suppliers and limit efforts to diversify supply chains toward smaller and more sustainable suppliers? Will AI-based monitoring systems infringe on employee rights and personal data protection? Does AI risk disfavoring efforts that companies have been making to build trusting relationships and include diverse and smaller suppliers in their supply chains?

Ethics, Sustainability and ESG: Will AI deliver new tools that help drive traceability and sustainability? Or, does AI risk embedding practices that are not sustainable? What impact might AI have on stabilizing and supporting carbon offset markets and offset verification through AI-based blockchain and remote surveillance?

Participant profile

The Forum is intended to benefit directors and principals of corporations operating in various jurisdictions who want an off-the record opportunity to explore and address some of the greatest challenges facing them as directors in the coming decade. Our objective is to prioritze directors currently serving on corporate boards. Those people were the majority of participants in the room along with a mix academics and other experts.

The aim was to help them return to their boardrooms with new ideas which they can implement, and with new partnerships and insights, so that they can become thought leaders and change makers for the coming decades.

FEES

The program fee is 3990 USD*

Includes program participation as well as all meals and accommodation at Hotel Schloss Leopoldskron.

* 2000 USD for academics and public sectors employees. Scholarships are available for exemplary applicants.

Cancellation Fees:

In case of cancellation, a participant may transfer registration to another member of the participant's organization (city, department, firm, etc.) upon mutual agreement. Alternatively:

Cancellation more than 60 days before the program: 100% refund
Cancellation less than 60 days and more than 30 days before the event: 50% refund
Cancellation less than 30 days, but more than 14 days: 25% refund
Cancellation less than 14 days: no refund