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AI-Related Risks Test the Limits of Organizational Risk Management

Tech Advances Are Outpacing Risk Management Capabilities

Many of our experts cited the speed of AI-related technological developments as testing the limits of organizational risk management frameworks. As Stanford CodeX fellow Riyanka Roy Choudhury contends, “The rapid expansion of AI, particularly generative AI, has exceeded the operational capabilities of most organizations, [resulting in deficient] AI risk mitigation strategies.” Land O’Lakes CTO Teddy Bekele notes that “the overall preparedness to tackle AI-related risks is insufficient, mainly due to the fast-paced advancements in AI that outstrip the development and implementation of effective risk management practices.” In addition to AI’s fast-evolving capabilities, its pace of adoption is also challenging organizations. As AfroLeadership’s Belona Sonna explains, “AI systems are among the fastest-growing applications in the world. The associated risks are therefore equally dynamic.”

While Sameer Gupta, chief analytics officer at DBS Bank, and Linda Leopold, H&M Group’s head of AI strategy, argue that organizational risk management capabilities need to “keep pace” with the “rapid evolution of AI capabilities” and “the speed of tech development and the spread of usage,” they also acknowledge the challenge of doing so in practice. Leopold observes that “even for organizations that do have a solid responsible AI program in place, keeping up with the speed of development and continuously addressing new risks requires effort.”