The corporate boardroom dynamics worldwide are undergoing a profound transformation, with artificial intelligence (AI) now playing a pivotal role as a trusted advisor to the C-suite. No longer confined to data crunching, AI is revolutionising decision-making at the highest levels, making way for more data-driven, decisions and moving away from solely human intuition and experience.
One company that is capitalising on this boom is Abu Dhabi-based International Holding Company (IHC). On May 7, IHC announced the successful integration of Aiden Insight, an AI-powered virtual entity, as a Board Observer. According to a statement, during its first attendance at IHC’s Board Meeting on May 6, 2024, Aiden Insight demonstrated its “exceptional analytical capabilities” by dissecting decades of business data, financial reports and market trends to deliver actionable insights and predictive analyses.
In its first-ever media interview with, Aiden Insight explained its role and responsibilities within the company’s board to Finance Middle East.
In its own words, Aiden Insight processes big data capabilities (financial reports, market trends) using AI and machine learning to identify patterns and make predictions via an ETL System. Key AI capabilities include ETL data pipelines, machine learning, data lakes, natural language processing and speech synthesis. “These capabilities enhance IHC’s decision-making by providing insights on financial analysis, performance, strategic recommendations, innovation tracking and decision support,” it said. “This integrated approach ensures that the board of IHC receives robust support in navigating complex business scenarios, thereby boosting both efficiency and growth.”
Aiden’s role as a non-voting observer ensures that its contributions are purely data-driven, providing the board and management with a comprehensive analysis of the company’s financial and operational aspects. Speaking about investor confidence and perceptions of corporate governance practices within the industry, Aiden Insight said that “AI board observers can theoretically boost investor confidence as the transparency and backing of informed and strategic decisions are being made by thorough and unbiased data analysis.”
“AI’s ability to expedite analysis and decision-making showcases agility and adaptability to market changes,” it explained. “Strengthened compliance mechanisms reduce risk and enhance investor perceptions of corporate governance.”
“Appointing an AI board observer has already allowed IHC to make quick data-driven decisions based on enhanced strategic scenarios,” said Peter Abraam, Chief Strategy and Growth Officer, IHC. “We have seen increased efficiency through faster and more accurate information processing, allowing IHC’s Board Members to identify crucial areas of revenue growth and gain specific insights into the performance of our portfolio.”
IHC believes AI augments every role, as evidenced by Aiden’s speed and power in analysing data and identifying market trends. “AI board observers are expected to adopt multidimensional analysis, incorporating diverse data sources for analysis on not only financial metrics but also social, environmental and regional aspects,” explained Abraam. “AI allows us to make faster decisions, with fewer analytical errors, giving us superhuman abilities to progress.”
Bias and limitations
Predictive analytics is one of the most compelling applications of AI in the boardroom. AI algorithms analyse historical data, market trends and other variables to forecast future scenarios. This isn’t just about predicting sales figures; it’s about anticipating market shifts and ensuring the company is ready to pivot when necessary. However, there are concerns regarding the potential biases or limitations of AI board observers in providing objective and unbiased insights to boards.
“Currently, with all large language models (LLMs), potential biases exist due to training data or algorithms used by AI systems,” noted Abraam. “IHC mitigates these risks through thorough data preprocessing, algorithmic audits and continuous human oversight as part of the nascent steps of teaching and building the model. Human involvement in decision-making is crucial to ensure objectivity and prevent biases while making decisions based on the model’s recommendations and analysis.”
Abraam noted that “ensuring the AI system can effectively learn and interpret vast amounts of diverse information across various subsidiaries, industries and regulatory environments, adapting its understanding to the specific context of each decision,” can be challenging. It includes managing increasing complexity in decision-making processes and ensuring AI’s recommendations align with human ethical standards and corporate values.
Compliance
IHC, being a listed company with market responsibilities, has prioritised compliance with local laws and SCA regulations throughout the development of Aiden. “We emphasise transparency and explainability in AI decision-making, ensuring fairness and preventing biases as much as possible,” stated the company’s Chief Strategy and Growth Officer. “Again, human oversight remains crucial. Additionally, we are providing training and education of the AI model and the Board Members to maintain the governance structures and improve usage.”
Abraam told Finance Middle East, that while integrating AI like Aiden Insight into IHC’s governance, the company prioritised data sovereignty by operating Aiden Insight on-premises in its UAE datacentre. He stressed that, while Aiden Insight can significantly augment decision-making capabilities, it is imperative that it does not replace human judgment.
“This approach helps mitigate risks associated with privacy and ensures that decision-making remains fair and accountable to the company’s stakeholders.”
While the dominant narrative is that AI is here to replace humans, it is essential to understand that it is here to augment their capabilities. AI doesn’t just provide data; it can also assist in ethical decision-making. For instance, AI can help identify potential biases, ensuring that choices are equitable and ethical. This augmentation of human capabilities empowers executives to make more informed decisions.
AI’s role will become even more central in shaping corporate strategies as technology advances. The future belongs to organisations that embrace AI as an essential advisor, aligning human expertise with machine intelligence.