Strategies to improve risk management for generative AI
| This blog is related to the latest chapter of The CEO’s Guide to Generative AI. To explore all chapters of the book, visit the website or download the digital edition. |
Generative AI has the potential to create unprecedented value, but it also introduces new and complex risks that can have far-reaching consequences.
As a result, many leaders are wary about this revolutionary technology. While 55% of CEOs see gen AI as an opportunity, 45% view it as a risk.
But with the right approach, organizations can benefit from the scale and speed of gen AI without falling victim to unforeseen threats.
Understanding the risks of gen AI
In the latest chapter of the CEO's guide to generative AI, the IBM Institute for Business Value identifies three key takeaways for CEOs in regard to AI risks:
1. Gen AI is unleashing a maelstrom of risks. Gen AI is introducing a wide range of new risks, from data breaches and cyber-attacks to regulatory non-compliance.
2. Reputations are on the line. Gen AI has the potential to significantly impact an organization's reputation, both positively and negatively.
3. The future is a threat multiplier. As gen AI becomes more widespread, the potential consequences of a major failure or breach will multiply exponentially.
Managing risks and opportunities
To stay ahead of these challenges, CEOs must set a risk threshold that fuels innovation, not chaos. This requires understanding the full spectrum of risks that gen AI introduces and a proactive approach to mitigating those threats.
Leaders can maintain credibility with stakeholders by establishing processes to monitor and respond to reputational risks as they emerge. This involves predicting which risks are most likely to escalate and suggesting proactive strategies to keep the lid on heated situations.
Finally, CEOs must prepare for “100-year risks,” which are rare but catastrophic events that can have long-term consequences. These risks are often unpredictable and can arise from any number of factors, including natural disasters, cyber-attacks, or supply chain disruptions.
The roadmap to risk management
For CEOs who want to unlock the full potential of gen AI while minimizing risks, the new chapter of the CEO's guide to generative AI provides a blueprint for success.
By understanding the complexities of gen AI risk management and taking proactive steps to mitigate risks, CEOs can drive innovation, protect value, and transform potential threats into opportunities.
Read the full report to discover the three things every leader needs to know and three things they need to do now to improve gen AI risk management.
Also, subscribe now to receive complimentary reports from the IBM Institute for Business Value that will help you drive business growth, innovation, and success.
