Risk Mitigation and Enterprise Alignment

In addition to the artificial intelligence (AI) project management addressed in Chapter 3, the use of AI has its own risk profile. In addition to well-known cyber risk, there are many significant areas of concern that require mitigation. Since many see AI as an enterprise transformational change, the impact on the organization will be substantial and very serious if overlooked. Most importantly, AI must be aligned with the organization and not vice versa, not as many believe it is technology leadership. Yes, processes, policies, and governance need to change or even deleted but the nature of the organization is core. An oil company will likely not use AI to become an automobile manufacturer but will build on its core institutional knowledge and deep culture to become a better energy company, at least in the near term. Management must understand this process if the AI transformation is to be successful.