Quinlivan Provides Guidance for Boards to Consider Regarding AI in NACD Heartland's Insights Column

03.28.2024

Stinson LLP Partner Steve Quinlivan addresses best practices and strategies for boards to consider in response to the complex challenges and opportunities posed by artificial intelligence (AI) in a recent National Association of Corporate Directors Heartland Chapter Insights From the Boardroom column.

"AI will likely become pervasive throughout many companies' operations and in manners that are not predictable today," Quinlivan says. "Thus, a board's duty of oversight is not a point-in-time analysis but is continuous as the migration to AI occurs." He states boards have a duty of oversight that includes understanding how AI will fit into a company's strategies and operations, as well as when, where and how AI will be deployed.

Quinlivan notes that once a board understands how AI will fit into the company's strategies and operations, it needs to consider the associated risks, including its impact on stakeholders such as employees and customers. He says as the regulatory efforts surrounding AI increase, boards should also oversee compliance activities where material to an enterprise.

Quinlivan represents clients in M&A, securities regulation and offerings, ESOPs, REITs, international transactions and financing matters. He assists clients on Securities Exchange Commission reporting matters, advises boards of directors in corporate governance and liability issues and works with litigation teams defending officers and directors.

Read Quinlivan's full response.