Safe use of Generative AI to enhance productivity in Boards of Directors' Corporate Governance

Man typing on laptop using Generative AI

In an earlier article we discussed how corporate governance processes can safely be managed digitally via end-to-end secured sealed processes in a “digital vault” 

How can we enhance the user experience and productivity through smart and safe application of Artificial Intelligence (AI), especially Generative AI, so called Large Language Models and the latest iteration – AI Agents? 

Artificial Intelligence itself together with Machine Learning (ML) is not new - it has been around for decades especially for applications involving pattern matching and prediction.  

Early AI/ML models were used for playing chess, bank fraud detection, customer behaviour analysis and prediction, weather prediction, medical imaging, military applications and so on. More recently AI has shown up in digital cameras, smart phone Apps and even home appliances.  

AI/ML became embedded in our lives without our really noticing. We didn’t notice because the tools of AI/ML were in the hands of large organisations that had the computer power, tools and skills to build their own application-specific data models. We only needed to use the end result that was embedded in our everyday devices. 

ChatGPT from OpenAI changed everything. OpenAI used vast computer power to crawl the internet and create a “neural network” model of all that knowledge – a so-called Large Language Model. What’s more ChatGPT had the ability for a user to make queries and create new content based on the LLM. That’s where the word “Generative” in Gen AI comes from. 

ChatGPT was not the first GenAI implementation, but what OpenAI did that was revolutionary was to make ChatGPT freely available to anyone – AI for the masses!  

ChatGPT has since been followed by numerous other offerings, with one of the most recent being China’s DeepSeek. This took GenAI to a new level by using much less computer power and being much faster to market. 

Agentic AI is the latest, and perhaps most exiting capability. AI Agents are like customised AI chatbots or automated modules that we can embed in other application software. We can even create our own AI agents using everyday tools like MS365 CoPilot. 

By asking questions through the smart use of “prompts” we can use GenAI to create “new” content, or help us better understand existing content. And we can use AI Agents to automate of workflows.  

But there are risks: 

1. Content produced by AI LLMs is based on an amalgamation of multiple source documents. When we use these tools, we don’t always know what those source documents are, whether they are based on copyrighted content, or even if they are true. In fact, even if the source documents are true, the AI model may combine them in a way that is no longer true. 

2. In the process of submitting a prompt, we are sharing some information with the model. That means we must be very careful in the questions we ask, especially if we are using a publicly available model. We may be sharing confidential information with a 3^rd party without knowing. Or our questions may subtly influence the response in a may that introduces bias. 

   
   

Knowing these risks, we can come up with some simple guidelines that help us use Gen AI safely. 

1. Never share confidential or sensitive information in a prompt with publicly available models such as ChatGPT. Fortunately, it is possible to set up private instances of basically the same models such as GPT4 and, configured correctly, these can safely be used for such sensitive applications. 

2. Beware of using Gen AI to conduct research or to create significant new content. Use tools that link to the source document(s) that can then be verified and then do verify the results! 

3. Do use Gen AI to help understand existing content such as summarise emails, documents or PDF files. 

4. Do use Gen AI to rearrange, combine, cross-reference or compare your own existing content. 

5. Do use Gen AI to create simple, generic drafts of content that you can easily check for correctness, such as job descriptions, marketing plans etc. 

6. Do always do a sanity check against generated content and remember that ultimately you own it! 

With the above in mind, Trusted Services (TSV) has already established its own private LLM instance for use by TSV staff.  

Further, TSV is using the LLM APIs to build seamless additional functionality into its Board.Vision corporate governance and compliance platform. 

These features include: 

1. Summarise a document, enabling the user to quickly understand key information without reading the whole document 

2. Ask direct questions of the document and receive answers in natural language, eliminating the need to search or collate manually 

3. Translate sections of the document instantly, making content accessible in different languages 

4. Content based search across multiple documents 

5. AI Assisted creation of Surveys 

6. AI Agents for natural language self-service in various areas such as “how to”, support queries, directors’ assistant, admin assistant 

   
   

board.vision screenshot

All of this takes place within the secure, sealed, encrypted Board.Vision digital vault. Data never leaves a TSV controlled environment. 

We look forward to developing other productivity improvements, but security and safety will always be our top priority.  

Thriving in a VUCA world with Strategic Business Planning

The transition for Singapore’s new Prime Minister has been seamless, in stark contrast to many other nations. The global political landscape has and continues to face numerous impending elections with the presidential election in the US being of key interest to nations and corporations across the world. Each election brings with it market implications locally and some globally.

Leaders across the globe are pondering questions such as: “What if Trump wins the 2024 election? Will the Israel-Hamas conflict escalate into a regional war? How will global supply chains be affected by potential disruptions? Will climate change severely impact food and water supplies, leading to further conflicts? These underscore the volatile, uncertain, complex, and ambiguous (VUCA) nature of our times.

Need for Strategic Business Planning

In the well-read Sun Zi’s “Art of War”, the sage highlighted that it is impossible to predict outcomes with absolute certainty in a VUCA environment. He advocated meticulous preparation and planning, or what we today, in our context, call ‘Strategic Business Planning’ (SBP). Prior to the COVID-19 pandemic, many leaders viewed SBP as a waste of time. However, the pandemic highlighted its necessity for organisational survival and resilience.

Critics of SBP argue that its usage is limited by the unpredictability of future events. Yet, this unpredictability makes collaborative strategic planning even more critical. Navigating in a VUCA environment demands agility, adaptability, creativity, and strategic thinking from the entire leadership team. A well-tuned leadership team, familiar with market trends and patterns, can swiftly regroup and adjust strategies in response to significant changes. The SBP process — encompassing team deliberations on market intelligence analysis, self-evaluation, scenario formulation, strategising, and planning — is more valuable than the plans itself. While strategic direction and plans are dynamic and subject to changes, having a structured approach ensures that everyone in the leadership team is on the same page, facilitating cohesive action and alignment even when the plans are changed.

Strategic Business Planning at Trusted Services

At Trusted Services Pte Ltd (TSV), our SBP process involves comprehensive environmental scanning, understanding customer and competitor landscapes, relevant startups and technological changes. This enables us to identify driving forces behind trends and patterns of change, which helps us develop future scenarios to proactively create solutions.

Our scenarios provide a framework for deducing ‘Opportunities and Threats’ (OT), revealing what our clients might face, strategising about the future and allowing us to prepare and position ourselves effectively. Additionally, we conduct honest assessments of our internal capabilities and performance relative to our competitors, identifying our ‘Strengths and Weaknesses’ (SW) versus our competitors in responding to the scenarios. This comprehensive analysis informs our strategic planning and decision-making processes.

Effective implementation of strategic plans requires clear assignment of responsibility and accountability, and structured monitoring. Our plans include defined owners, goals, and timelines. During execution, disciplined reporting and monitoring processes, such as quarterly performance reviews are crucial. If goals are not met, root cause analysis and remedial action plans are done and reported.

Benefiting from Strategic Business Planning

TSV had gained much from our experience in doing and executing SBP, e.g.,

1. Creation of a common context and narrative for the leadership team to rally behind and navigate and forms an anchor point amidst a rapidly changing landscape.

2. Formation of an agreement between the Board and the senior management team that crystallises the strategy, and the execution plans to deliver its goals.

3. Alignment of an organisation’s resources in pursuing its strategic objectives in a defined manner, which can be tracked and changed when necessary.

Why it matters

At TSV, our focus is on delighting our clients by anticipating and responding to their evolving needs as we partner them to navigate our dynamic VUCA world. This demands us to have a structured approach that enables our organisation to be aware of its position and to adapt swiftly to changes.

While SBP has its limitations and can be time consuming, there is a greater need for the Board, Management and the Organisation to be aligned, agile and adaptable to deliver and exceed the expectations of our clients based on not just today’s requirements, but, more so for their future needs.

Board.Vision – Board of Directors’ invaluable digital assistant for governance and strategic collaboration

The SBP documents contain the organisation's strategy and plans to deliver on client needs and compete in the marketplace. It is critical that these documents are kept securely as records on the agreed plan between management and board. At the same time, they need to be easily accessible to the Board of Directors and the Management to facilitate strategic collaboration. This is where Board.Vision, a secure digital board management solution, can be an invaluable digital assistant for your organisation.

Viewing Strategic Business Planning Document on Board.Vision

Board.Vision helps to safeguard company records and provide a ‘centralised & secure system of records’ for board discussion and approval. Board.Vision also secures the information and is securely accessible anytime and anywhere on any devices.

Find out more about Board.Vision or ask us for more details.

Cyber Security Imperatives for the Board of Directors

Board of Directors having a discussion on Cyber Security and Data Protection policies.

When it comes to the Board of Directors' responsibilities, the Singapore Institute of Directors lays down some important guidelines. Directors must uphold legal duties, acting in the company's best interests with integrity, diligence, and without conflicts of interest. Directors must also task Management with establishing policies and structures to ensure compliance with laws and regulations, fostering an ethical organisational culture, and managing risks effectively.

In today's rapidly evolving technological landscape, Directors must be especially vigilant on information security risks. With advancements like Artificial Intelligence and ever-evolving cyber threats, there's a constant need to safeguard the company and its employees from potential harm.

Most concerning is the vulnerability of employees to social engineering scams, which can compromise both personal and company data. Additionally, the reliance on IT systems to store critical information means that a cyber incident could have catastrophic consequences, from financial losses to reputational damage. In extreme cases, this can be an existential threat!

To address these risks, the Board has two key responsibilities:

1. Ensure robust cyber security and data protection policies are in place, including protocols for incident response. It's imperative to anticipate and prepare for cyber incidents, with regular testing and validation of these measures. The Board should actively engage with Management to oversee policy implementation and compliance, through sub-committees like the Audit and Risk Committee. Moreover, staying informed about relevant regulatory requirements is crucial.

2. Recognise the sensitivity of board-related information and the risks associated with its handling. From board papers to resolutions, this data can be extremely sensitive and requires secure storage and transmission. Traditional methods like printed documents and email attachments feel comfortable, but in fact, it can pose significant security risks. Utilising modern board management software, such as Board.Vision from Trusted Services, can enhance security measures and protect against data breaches.

By addressing both these dimensions of cybersecurity and data protection, the Board can effectively mitigate risks and safeguard the company's interests.