Governance professionals urged to embrace AI in corporate structures

Company directors and secretaries have been called upon to rethink governance in an AI-driven world and explore ways to foster more objective, transparent, and effective decision-making processes.

This call was made during the 14th Annual Directors and Company Secretaries Conference, held under the theme Artificial Intelligence – Transforming the Corporate Governance Landscape.

The conference, hosted by ICSA Uganda in collaboration with the Chartered Governance Institute UK and Ireland and KPMG, took place at Mestil Hotel in Kampala.

Jane Okot P’Bitek Langoya, Chairperson of ICSA Uganda, urged governance professionals to embrace AI and move beyond the biases surrounding it, emphasizing that such biases impact decision-making.

She highlighted AI’s growing influence on corporate governance and stressed the need for professionals to adapt.

"We are biased against AI, for instance, but as human beings, AI is here to stay. We need to embrace it and see how to ensure that we work with it. That's why we need to debias ourselves and look at the positives and negatives. How can I work on them so that we embrace it? It's here to stay, and if you sit back and don't act, it will overtake you," she said.

Jane Okot P’Bitek also underscored the critical role of governance professionals in decision-making at both senior management and board levels. She pointed out that human biases both conscious and unconscious often shape perspectives and influence critical discussions, risk assessments, and strategic choices.

She described AI as a key tool in minimizing biases while enhancing data-driven decision-making, noting that while it presents opportunities, it also comes with challenges that governance professionals must navigate.

Despite AI’s potential benefits, Jane Okot P’Bitek expressed concerns about the ethical challenges it poses. She particularly emphasized the risks associated with AI-generated content, deepfakes, and data privacy.

"The major threat is the ethical component. These days, you see a picture of someone on WhatsApp or a video, and you can't really tell is this the real person, or has the image been manipulated? Has the video been altered using AI to create actions that are not genuine? So, the ethical aspect of AI is a major concern," she stated.

She further called upon the Ugandan government to establish legal frameworks for AI regulation, noting that Uganda currently lacks laws governing AI, unlike the European Union, which has developed AI regulations with a strong focus on ethics.

"In Uganda, we don’t have a law on artificial intelligence. The only law I’ve seen is in the European Union, and when you read it, it is heavily about ethics. How do you ensure, for instance, that when you call a company and get an automated response, it is properly governed? Is it AI? These are the ethical issues we must address, along with the data being collected," she added.

Peter Kyambadde, a Partner at KPMG, in his opening remarks, expressed pride in KPMG’s four-year partnership with ICSA Uganda in organizing the annual conference.

He highlighted the rapid advancements in AI and its impact on industries and economies.

"Even here in Uganda, we are witnessing the rise of AI across various sectors, signaling a shift toward a technology-driven economy. To remain competitive, board members and governance professionals must embrace AI and integrate it into governance structures," Kyambadde stated.

Michael Jjingo, speaking on behalf of Centenary Bank, also urged professionals to approach AI with seriousness, strategy, and ethical considerations, emphasizing its potential for growth and innovation.

"AI presents immense opportunities but only if governed responsibly. As leaders, we must ensure that AI is a tool for growth, innovation, and compliance rather than a source of risk. I urge all of us to take AI seriously, strategically, and ethically," he said.

Patrick Courtney, the Head of Membership at the Chartered Governance Institute UK and Ireland, commended the conference organizers for choosing a timely topic on AI, describing it as both a global opportunity and a challenge.

"AI is with us. It's with us all. It's in our smartphones, it's in our computers, and it's very much in all of the systems that we are using. So I think the relevance and the importance and the urgency to think about this topic and to take it very, very seriously is very much alive. So this conference is extremely timely," he said.

Patrick emphasized that the challenges associated with AI are not unique to Uganda but are global issues that require international collaboration and innovative thinking.

"It isn't an East African problem, an African problem. It's a world problem, and I think everybody has the potential to contribute to finding ways that we can use AI constructively and use it effectively," he added.

He further encouraged people to embrace AI.

The conference provided platform for private, public and NGO governance to discuss the intersection of AI and corporate governance, with a focus on leveraging AI for better decision-making while addressing the ethical and regulatory challenges it presents.