From the Editor's Desk

AI-Related Risks Test the Limits of Organizational Risk Management

The spring 2024 issue’s special report looks at how to take advantage of market opportunities in the digital space, and provides advice on building culture and friendships at work; maximizing the benefits of LLMs, corporate venture capital initiatives, and innovation contests; and scaling automation and digital health platform.

The spring 2024 issue’s special report looks at how to take advantage of market opportunities in the digital space, and provides advice on building culture and friendships at work; maximizing the benefits of LLMs, corporate venture capital initiatives, and innovation contests; and scaling automation and digital health platform.

For the third year in a row, MIT Sloan Management Review and Boston Consulting Group (BCG) have assembled an international panel of AI experts that includes academics and practitioners to help us gain insights into how responsible artificial intelligence (RAI) is being implemented in organizations worldwide. Last year, we published a report titled “Building Robust RAI Programs as Third-Party AI Tools Proliferate.” This year, we continue to examine organizational capacity to address AI-related risks but in a landscape that includes the first comprehensive AI law on the books — the European Union’s AI Act. To kick things off, we asked our experts and one large language model to react to the following provocation: Organizations are sufficiently expanding risk management capabilities to address AI-related risks. A clear majority (62%) of our panelists disagreed or strongly disagreed with the statement, citing the speed of technological development, the ambiguous nature of the risks, and the limits of regulation as obstacles to effective risk management. Below, we share insights from our panelists and draw on our own observations and experience working on RAI initiatives to offer recommendations on how organizations might leverage organizational risk management capabilities to address AI-related risks.

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