According to a recent article in the Canadian Bar Association’s National Magazine, analysts have estimated that generative artificial intelligence, or Gen AI, could boost companies’ value by up to US$4.4 trillion annually, primarily by increasing productivity and cutting costs. The problem, as journalist Agnese Smith explains, is that the AI tools can be unreliable, sometimes producing inaccurate content. And that can lead to challenges for CEOs and their boards. Smith turned to Osler partners Andrew MacDougall, an expert in corporate governance, and Sam Ip, an expert in artificial intelligence law, for their insight on whether the rewards are worth the risk.
“At the end of the day, it’s just another piece of technology,” Andrew says. “Is there accountability? Are there the right processes and procedures? The important thing is for CEOs to put in place sufficient guardrails to reduce the risk to an acceptable level. It’s really not any different from a CEO’s normal situation.”
The article goes on to discuss the role governments play in developing frameworks for the regulation of AI as well as the speed at which tools like ChatGPT are being adopted by corporate Canada — despite their inherent issues.
As Sam says, these applications are “on the radar of most Canadian firms, particularly those in the tech sector.
“Almost every one of my clients is using it.”
To learn more about the opportunities — and risks — associated with Gen AI, read Agnese Smith’s full article “Is Gen AI worth the hassle and risk?” in the CBA’s National Magazine from May 17, 2024.
