As artificial intelligence continues to reshape industries across the APAC region, boards are under growing pressure to ensure their use of AI is ethical, transparent, and compliant with regulations. From managing AI-related risks to overseeing responsible innovation, directors must be proactive in ensuring their AI implementation is aligned with regional and global compliance.
As a board administrator, you’re always seeking new ways to streamline governance. Whether you’re part of an ESG fund in Australia or a board of directors in the textile industry, efficiency matters. Chances are you’ve already embraced AI to save time and reduce costs. But it’s just as important to be selective in how you apply it. For today’s boards, AI governance must remain a top priority.
Understanding the AI Governance Landscape in APAC
Whether you’re using AI for ESG reporting in Australia or as a board meeting agenda builder, you need to prioritise its governance. Many governments in APAC are approaching AI governance with varying national priorities, technological maturity, and different levels of risk.
To create an environment of fairness, transparency, accountability, and privacy, there are several frameworks for overseeing AI. These include the EU AI Act, OECD AI Principles, and others. Global models are influencing regional governance norms, and they’ve established global standards, encouraged risks, created international cooperation, and promoted AI ethics. Some of these ideas are intuitive, while others need further exploration.
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5 AI Governance Priorities for APAC Boards
If you have one of the ESG certifications in Australia, your organisation is on the right track. Here’s a look at 5 priorities you need to adopt:
1. Define Board-Level AI Oversight and Accountability
Assign AI oversight and accountability to a specific person or titleholder so it’s clear who’s responsible for the task. Boards can ensure clear ownership of AI governance by defining board-level oversight, promoting a culture of responsible AI use, continuous monitoring and adaptation, and integrating AI governance with overall risk management strategies.
2. Assess and Mitigate AI-Related Risks
From inaccurate information to bias, the use of AI carries risks that boards must continually assess and address.
Key legal, ethical, and operational risks include non-compliance with regulations, fairness, transparency, and potential reputational damage. By establishing clear oversight, defining accountability, and aligning AI with ethical standards and strategic objectives, boards can embed AI into their risk management frameworks.
3. Ensure Ethical Use and Fairness of AI Systems
You can ensure your AI use aligns with company values and regulatory expectations when you design a clear AI governance framework and keep up with the regulatory landscape. Some questions directors should ask about transparency, bias, and explainability include:
- Are there mechanisms in place for external audits of AI models?
- What are the potential tradeoffs between reducing bias and other factors like accuracy or efficiency?
- How are AI outputs marked or communicated to clearly show they came from an AI system?
4. Monitor Regulatory Compliance and Data Governance
Some of the existing and pending regulations that govern AI in the APAC region include:
- Data Security Law (DSL)
- Personal Information Protection Law (PIPL)
- Model AI Governance Framework for Generative AI
- AI Verify testing toolkit.
- Basic Act on the Development of AI
- Establishment of Trust (AI Basic Act)
- Privacy Act 1988
- The Australian Competition and Consumer Commission (ACCC)
- Digital Personal Data Protection Act (DPDP Act)
Pending legislation and potential future developments include:
- AI Promotion Act
- The Generative AI Measures
- The AI Basic Act
- The proposed Digital India Act
- The ASEAN Guide to AI Governance and Ethics (2024)
Your board can prepare for cross-border compliance in complex regulatory environments by staying up-to-date on the latest laws and pending regulations..
5. Support Responsible AI Innovation
When they establish clear AI governance frameworks, build transparency, and ensure continuous monitoring and evaluation, boards can encourage innovation without compromising ethical standards. Some of the features and outcomes of AI use include:
- Data analysis & insights
- Automation of routine tasks
- Predictive analytics and risk management
- Enhanced communication and collaboration
- Scenario planning and simulation
- Improved board evaluations
- Improved decision-making
- Increased efficiency
- Enhanced risk mitigation
- Stronger corporate governance
- Better stakeholder engagement
Key Questions Boards Should Be Asking About AI
Here are some key questions your board should ask about AI:
- What AI systems are currently in use across the organization, and if there are none, what AI tools are accessible to our board?
- How are we documenting decisions related to AI deployment?
- How are we training our board members to use AI in a way that remains secure and compliant?
Common AI Governance Challenges in the APAC Region
Lack of AI literacy, the complexity of AI development, and organisational and cultural barriers all pose challenges for executive leadership. With many countries involved, cultural, legal, and technological differences can complicate AI governance. What one culture views as an ethical problem might not be an issue for another. Some gaps that might occur include:
- Understanding AI fundamentals
- Critical evaluation
- Ethical implications
- Workforce preparedness
- Addressing the AI divide
- Lack of comprehensive legislation
- Enforceability and accountability
- Transparency and explainability
- Bias mitigation and fairness
- Data privacy and security
How OnBoard Supports AI Governance in APAC
Whether you’re preparing for an ESG course in Australia or creating an agenda for the next board meeting, AI can streamline these tasks.
OnBoard AI:
- Centralises AI-related policies and governance documents for easy tracking and board-level visibility.
- Records AI-related decisions with time-stamped audit trails, ensuring transparency and accountability in oversight.
- Enables secure collaboration across compliance, risk, and technology teams to review AI initiatives and governance practices.
- Supports version control and approval workflows for policy updates, risk assessments, and AI project documentation.
- Provides customisable dashboards and workflows to help boards monitor AI adoption, ethical risks, and regulatory alignment.
- Ensures digital governance readiness by equipping boards to manage and document AI-related obligations within a single secure platform.
AI is a powerful tool your board can harness to streamline essential tasks, from drafting meeting minutes to building agendas. But in the APAC region, effective governance is critical. Your priorities should include defining AI oversight, mitigating risks, ensuring ethical use, monitoring regulatory compliance, and supporting responsible innovation.
At OnBoard, we’ve designed a platform with the features boards need most. Our suite of AI tools helps you work more efficiently while upholding the highest ethical standards. From gathering data to generating accurate minutes, our AI ensures your board stays focused on strategy.
Ready to discover the OnBoard difference for yourself? Request your trial today!
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