Mandates for a Public Company When Considering GenAI

Artificial intelligence (AI) is capturing the imagination of many in the business world. Any director or executive officer (CEO, CFO, CLO/GC, CTO and others) of a publicly held company who ignores the risks and opportunities of Generative AI (GenAI) will be at risk of personal liability.

Nowhere is the risk more fraught than in a specific type of highly regulated organization is accountable to a myriad of stakeholders: U.S. publicly held companies.

Every board of directors and in-house legal team, as well as, executive teams managing a publicly held company must be keenly attuned to the corporate and securities litigation risks posed by GenAI.

Legal Decoder, along with Bevilacqua PLLC and Professor Nancy Rapoport, have written a whitepaper (“The Duty Of Supervision In The Age Of Generative AI: Urgent Mandates For A Public Company’s Board Of Directors And Its Executive And Legal Team“) that focuses on the principle that GenAI policies and procedures at a publicly held company must come from its board of directors and executive team. The stakeholders must take a proactive and informed approach to navigate the opportunities and risks associated with GenAI, consistent with the board’s fiduciary duties.

Download the whitepaper HERE.