New Delhi: Adopting robust AI governance frameworks is essential to ensure accountability and manage potential risks associated with artificial intelligence, according to the Confederation of Indian Industry (CII). In its latest guidebook on AI adoption, released recently, CII emphasised that responsible AI use not only mitigates adverse impacts but also builds trust among stakeholders.
AI governance refers to the frameworks, policies, practices, and standards that guide the ethical, responsible, and accountable use of artificial intelligence within organisations. The guidebook adds that the goal of AI governance is to ensure that AI systems are ethical, transparent, safe, reliable, responsible, fair, and compliant with legal and regulatory standards. It also involves managing the risks, quality, and accountability of AI systems and their outcomes.
With the increasing integration of AI into various aspects of business, AI governance has become a critical imperative to minimise potential harms, risks, and misuse—such as privacy breaches, biases, and security threats—while ensuring that organisations reap the maximum benefits of AI, the industry body noted.
CII further added that companies must implement processes to identify and mitigate biases and risks associated with the use of AI across business functions. Careful governance is necessary to fully leverage AI’s capabilities while addressing the challenges it presents, the CII stated.
The guidebook underlines that as AI continues to transform industries and business environments, board members play a crucial role in steering organisations toward responsible and ethical AI adoption. “Through thoughtful governance, executive boards can guide their organisations in harnessing the benefits of AI while safeguarding stakeholder trust and maintaining compliance with emerging regulations,” the CII added in the guidebook.
It also emphasises the importance of establishing and upholding clear, enduring values to maintain accountability in the use of AI within business operations. “By addressing both the opportunities and risks, boards can navigate the complex AI landscape, ensuring sustainable, responsible, and value-driven innovation,” it added. Furthermore, the guidebook highlights the need to promote interdisciplinary collaboration between AI experts, legal advisors, and business leaders.