It’s taking the cost and difficulty out of being a hacker so the barrier to entry is lower
By Howard Rabinowitz, Workflow contributor
In November 2022, ChatGPT burst into public consciousness amid buzzy headlines about how it could compose emails, essays, and song lyrics, chat circles around Siri, write computer code, and more. The arrival of generative pre-trained transformer (GPT) technology—or generative AI—was hailed as a watershed moment for society.
“Think of the turn of the last century when electricity was discovered and the impact it had on every industry, from manufacturing to healthcare,” says Gary Fowler, an AI entrepreneur and CEO of GSD Venture Studios, which incubates startup business plans. “This is where we are with AI and GPT today.”
Fowler sees limitless business applications for the text- and image-creation powers of generative AI, from smarter customer support to hyper-personalized marketing and faster report generation. But as companies rush to tap the commercial and enterprise workflow potential of generative AI, keeping governance issues top of mind will be critical.
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“In the European Union, meaningful AI regulation is at least 12 to 18 months away, and in the U.S., there’s nothing imminent on the horizon,” says Charles Radclyffe, founder and CEO of EthicsGrade, an ESG ratings firm that assesses AI ethics risks for global companies. “Meanwhile, GPT is already out in the wild. Companies have to learn how to use it responsibly, and how to prepare to mitigate its risks.”
But where to begin? In this rapidly evolving space, there are no hard and fast answers yet, but governance pitfalls are rife, from bias and security threats to the spread of shadow AI. As business leaders explore what guardrails should be put in place, they also must decide who “owns” governance of generative AI and GPT within the organization, and how it ladders back up to a holistic and transparent approach to governance.
As generative AI gains traction in enterprises, many organizations reflexively will delegate governance oversight to the CIO, CTO, or equivalent C-level tech role, but Radclyffe advises against this.
The CIO or CTO’s ultimate priority, he notes, is to leverage technology to maximize the company’s profits. “There’s a clear incentive misalignment,” he explains. “This is the reason we don’t allow the head of sales at a wealth management company to also be accountable for anti-money laundering.”
A better choice, he says, would be to delegate oversight to the most senior risk leader, such as a chief risk officer, with a dotted line to the head of ESG. The ascension of risk leaders to the C-suite has been accelerating, with 3 in 5 companies promoting them to the boardroom in recent years, and 29% considering doing so soon, according to global accounting firm BDO.
Of course, when it comes to generative AI, as with all shiny new tech advances that a company deploys, the ultimate human-in-the-loop is the CEO. With a 10,000-foot view of the business landscape from their corner office, the AI buck will always stop there.
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