Local boards need to get a grip on AI now, according to a corporate governance expert, because global rules are years away.

The Corporate Governance Institute (CGI) says that while the United Nations' recent launch of global AI governance initiatives is a good start, businesses in our region and beyond cannot afford to wait. The UN's efforts, including a new scientific panel and a global dialogue on AI, are not expected to produce tangible results until at least 2026. This delay leaves companies exposed to significant ethical, regulatory, and reputational risks.

According to Ciarán Bollard, CEO of the CGI, AI is already transforming business operations, and without internal safeguards, boards are gambling with their companies' future. He stressed that boards must treat AI oversight as an immediate responsibility, not a problem for the distant future.

What Local Businesses Should Do

Bollard recommends that companies establish their own AI governance frameworks right now. This means creating internal rules, oversight structures, and accountability mechanisms to ensure AI is used responsibly.

Boards should treat AI governance as a core part of their duties, just as they do with financial management and compliance. By taking a proactive approach, businesses can protect themselves from emerging risks, build trust with customers and stakeholders, and be better prepared to adapt when international standards eventually arrive. Good governance has always been about anticipating risks and protecting a company's long-term value, and AI is no different.