Running a small or medium-sized enterprise in today's fast-paced world is no small feat. You're constantly looking for ways to innovate, stay competitive and meet the ever-evolving needs of your customers. Generative AI (GenAI) offers a powerful solution, but it also presents new challenges. As a result, company directors are finding it raises critical questions:

What are the risks, and how can they ensure proper oversight when expertise is scarce?

 among public company directors found that:

Those figures – all below the 50% mark – show that a lot of companies are still in the starting gate when it comes to AI.

, recently convened a panel of experts and invited its members to join them for a confidential discussion about the challenges and opportunities around AI in business. For an in-depth look at the insights as well as practical strategies from the discussion, download our AI Unleashed: Tips for small and medium enterprises report 

In advance of the debate, the panel set the scene by illustrating the reality of AI in businesses today. Key takeaways included:

AI is not new… and it’s not just GenAI

One expert reminded attendees that AI is not new, it’s been on a 70-year journey that incorporates many technologies we use daily, such as machine learning and algorithms. “It’s not one thing and therein lies the problem for businesses in understanding what they are buying and using,” they said.

The OECD’s definition of AI provides clarification: “An AI system is a machine-based system that, for explicit or implicit objectives, infers, from the input it receives, how to generate outputs such as predictions, content, recommendations, or decisions that can influence physical or virtual environments. Different AI systems vary in their levels of autonomy and adaptiveness after deployment.”

, which ensures everyone is talking about AI from the same starting point. The recent emergence of commercially viable functional AI, which can act autonomously and create something “new” in response to prompts, has elevated awareness and created the need for stronger governance and a more urgent need for businesses to develop clear knowledge about AI and its safe application.

Based on a survey of 60 directors, this report offers expert insights on responsibly leveraging AI, covering data protection, upskilling, transparency, and governance.

AI-driven growth for your business

Combine traditional AI uses and new GenAI capabilities to find the sweet spot

Building on the introduction, another expert charted the evolution of AI in business as the “cornerstone of digital transformation”. It has been used to optimise operations, reduce costs and make data-driven decisions in applications such as demand forecasting, stock management and dynamic pricing, alongside quality control and predictive maintenance. These are largely business-facing use cases focused on efficiency and productivity.

GenAI introduces the opportunity for deployment in customer-facing use cases through its ability to mimic human creativity. Examples include highly personalised customer experiences and virtual assistants that advise customers based on an intimate understanding of their preferences and buying habits. “GenAI excels in creativity and personalisation,” they said, “helping businesses to adapt to customer needs much quicker while shaping and driving deeper engagements and ultimately competitive advantage.” They believe:

“The true power of AI lies in combining traditional and GenAI approaches together. So in retail, you’ve got the data-driven demand forecasting optimising logistics, while generative AI devises creative marketing campaigns to sell the products.”

Start with low-risk, high-reward projects

Both traditional and generative AI offer tempting transformative potential, but this comes with risks and rewards. The advice is that companies don’t need to make everything AI-powered all at once. Instead, they should take a strategic approach: “Look at the problem you are trying to solve first; don’t just say, ‘Here’s a technology, where does it fit?’”. The suggestion is to select “low risk, high reward projects that allow the organisation to achieve confidence and competence.”

These early projects should also act as pilots for 

 enabling the organisation to establish the right level of oversight so the power of AI can be harnessed safely.

Another expert shared some of the cautionary tales that have already emerged from corporate GenAI use, saying: “The real danger is of GenAI being thought of as human intelligence because it just isn’t. But its apparent fluency of text or audio answer conceals the nature of the statistical model behind it that can err like any software, and it happens quite painfully when it comes to light.”

They spoke of their personal experience, using AI-powered translation to translate 3000 hours of highly technical lectures into 22 languages in a very short time at low cost. However, they acknowledged that there is still a significant quality control exercise to undertake to check that the translations are accurate.

There are notable cases where GenAI is outperforming human counterparts. A customer service chatbot is now 

gaining higher customer satisfaction scores than human agents.

 However, caution was advised that companies are legally responsible when chatbots make mistakes – a defence from a company that it wasn’t responsible for a decision made by a chatbot was 

Summing up a common theme across GenAI use cases, another expert noted the need for a human in the loop to oversee, challenge and govern content and decisions made by AI. They raised the implications for training and development: “We need to look at AI literacy: do humans know how it is working?”

Employees require a level of understanding of the capabilities and limitations of AI systems so they can spot when errors have occurred, understand why they happened, and implement fixes where needed. AI implementation strategies should therefore include training and awareness programmes for staff who will be working with AI.

In a final thought, another expert recalled a recent comment they heard on the impact of GenAI:

“We have probably overestimated what GenAI will do in the short term and grossly underestimated what it’s going to do in the long term.”

Ensure your organisation stays ahead by complying with the EU AI Act, the first comprehensive regulation to address AI risks and safeguard fundamental rights within the EU. Find out how Diligent can help 

Governing GenAI: Risks and opportunities for SMEs 

This original version of this article was published on the S&P Global website and can be read 

. To find out more about our collaboration with S&P Global, 


In a business landscape defined by rapid change and high stakes, corporate boards, CFOs, and Investor Relations Officers (IROs) are more than decision-makers — they are the architects of resilience and long-term value.

Our recent webinar in partnership with S&P Global, "

Empowering Corporate Boards: The Evolving Role of Directors and CFOs in Driving Informed, Risk-Ready Decisions

," brought together industry experts to discuss the challenges and opportunities facing corporate leaders. Here are some key themes and insights from the session that can help guide your strategic decision-making.

1) Importance of data quality and timeliness

As the volume of data continues to grow, the challenge of filtering through this information to make informed decisions becomes increasingly complex. Mark Davis, a Senior Relationship and Growth Advisor at CrossCountry Consulting, emphasized, “You have to balance between giving the data and giving too much data. Is it really important, or is it noise?” Davis comments highlight the necessity for boards to focus on data that is not only accurate but also relevant and timely.

2) Cybersecurity and risk management oversight

With the rise in cyber threats, corporate boards must prioritize cybersecurity as a key component of their risk management strategies. Nithya Das, General Manager and Chief Legal Officer at Diligent, pointed out, “The pace of technology and the pace of data that's being shared is evolving at an incredibly fast pace.” This evolution necessitates that boards stay informed about their cybersecurity governance programs and the potential risks that can arise from technological advancements.

3) The evolving role of investor relations

The role of IROs has shifted from a primarily compliance-focused function to a strategic partner in the decision-making process. Kevin Roy, Head of Issuer Solutions, S&P Global Market Intelligence, stated, “IR is the role that's going to gather the feedback from institutional investors, sell-side analysts, and other stakeholders.” By effectively synthesizing market intelligence and investor sentiment, IROs can provide invaluable insights that shape corporate strategy.

3) Best practices for effective board communication

Effective communication is paramount for successful governance. As Mark Davis highlighted, “It’s not just about sharing data; it’s about sharing the story behind the data. Boards need context to understand the implications of what they’re seeing.” This underscores the importance of proactively delivering key information to board members in a concise and timely manner. The integration of technology can facilitate this process, allowing for seamless access to pertinent data.

4) Metrics and KPIs for informed decision-making

Understanding which metrics to monitor is crucial for board effectiveness. During the webinar, it was highlighted that boards should focus on key performance indicators (KPIs) that align with their strategic objectives. Kevin Roy remarked, “Ultimately, all the feedback that the Investor Relations team is gathering will help drive the strategic decision-making for the board.” This emphasizes the need for boards to have a clear understanding of their performance relative to peers and market expectations.

The insights shared during our webinar serve as a reminder that the landscape of corporate governance is continuously evolving. As Investor Relations Officers, Board of Directors, and Chief Finance Officers navigate these changes, it is essential to prioritize data quality, cybersecurity, effective communication, and the strategic use of metrics. By doing so, corporate leaders can make informed, risk-ready decisions that drive long-term success.

For more insights on the evolving corporate governance landscape, watch the full webinar hosted by S&P Global and Diligent.

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