CDN NEWS | 
US NEWS 
By Yogi Schulz
AI is sweeping through most organizations. It’s out of control, like the Wild West. AI output is showing up in reports and presentations. The Apple App Store and Google Play offer many free AI apps of varying quality. Every AI software vendor provides access to their prompt website. AI output is part of search results. AI capabilities are integrated into desktop software.
Board members see dramatic headlines in the media about AI fiascos. The articles describe disastrous outcomes that all boards want to avoid. These outcomes include:
- High organization disruption and recovery costs.
- Loss of reputation and revenue.
- Distracting regulator investigations and fines.
On the other hand, the excitement around AI points to an incredible opportunity that no organization can afford to ignore. Improved organizational performance benefits include:
- Accelerated product development.
- Enhanced employee productivity and innovation.
- Improved customer service with richer personalization.
- Reduced capital and operating costs.
- Optimized supply chain operations.
The board’s governance role suggests that future meetings should include a discussion of the following more specific topics:
- Acceptable AI usage.
- AI risk management.
- AI hallucinations.
- AI project best practices.
- Cybersecurity for AI applications.
- AI for cybersecurity defences.
Discussing these topics should lead to policies that form the basis for staff accountability. This second article describes the last three board AI topics. Click here to read the first article.
AI project best practices
AI application development is brand new. Teams often do not have the necessary skills to be successful. Sometimes, teams are under budget or schedule pressure. These situations lead teams to cut corners and disregard AI project best practices. To improve AI application development, the board and the CEO should sponsor the adoption of AI project best practices.
A widely accepted summary list of project best practices consists of the following:
- A project goal aligned with the business plan.
- A credible business case.
- A senior project sponsor.
- A suitably experienced project manager.
- A project team with the required skills and experience.
- A reasonable understanding of project risks.
- A comprehensive project charter.
- A reasonable project management plan.
Download this Warp-speed project assessment for a more comprehensive list of project best practices that a board should consider.
The widely accepted project manager selection criteria consist of the following:
- Project management expertise and experience.
- Desired personal attributes.
- Industry and business experience.
- Technical knowledge in information technology.
Related reading: Characteristics of a successful project manager
By embracing these AI project best practices and avoiding common pitfalls, organizations can significantly improve the likelihood of project success while minimizing risks.
Cybersecurity for AI applications
Because AI applications are new, project teams often fail to consider cybersecurity requirements in their designs. Adding cybersecurity defence features into AI applications later is less successful and more expensive. AI applications face new cybersecurity attack surfaces, including:
- Prompt injection.
- Training data attacks.
- Model theft.
- Model inversion attacks.
To reduce AI cybersecurity risks in applications, the board and the CEO should sponsor a review process that ensures adequate cybersecurity defense features are included in AI applications. The project characteristics that create cybersecurity risks include the following:
- Ambitious project scope risks.
- Project team skill risks arising from inexperience.
- Model vendor and software risks due to product immaturity.
- Software design gaps and instability risks.
- Management expectations for an aggressive schedule create a risk of inadequate testing.
The organization can adopt a policy that every AI application design must include relevant cybersecurity defense features.
Related reading: Top 10 causes of stalled AI/ML projects and some suggestions
AI for cybersecurity defences
Cyber attackers have noticed the explosion of AI capabilities and developed new attack surfaces, including those listed above, to challenge organizations’ cybersecurity defences. In response, cybersecurity software vendors have quickly jumped on the AI bandwagon. Unfortunately, some vendors have only added the word AI to their marketing materials and made few, if any, enhancements to their software. Other vendors have made more functionality enhancements and hyped those.
To further strengthen cybersecurity defences with AI, the board and the CEO should sponsor a review that ensures adequate cybersecurity defense features are included in the computing environment. The review should consist of ensuring that:
- AI features to better detect and respond to cyber-attacks have been implemented.
- A cybersecurity platform integrates multiple tools, data, and processes into a unified system that includes AI features. This integrated approach is preferable to numerous point solutions.
- AI features are purpose-built for cybersecurity management. AI-based cybersecurity should not be based on domain-agnostic tools.
- AI features enhance cybersecurity analysts’ experience. New features should not simply add more automation.
The organization can adopt a policy that includes AI features in the organization’s cybersecurity defences.
Related reading: Successfully managing Cybersecurity projects in the Age of AI
Conclusions
Every board of directors should sponsor the development and use of AI governance policies that clarify staff accountability and build AI trust while controlling AI risks. The policies will help drive innovation and deliver measurable business results.
Every organization can develop AI governance policies at a modest cost through the collaboration of staff and external consultants. The operation and enforcement of the AI governance policies are typically assigned to HR and IT staff.
Yogi Schulz has over 40 years of experience in information technology in various industries. He writes for Engineering.com, EnergyNow.ca, EnergyNow.com and other trade publications. Yogi works extensively in the petroleum industry to select and implement financial, production revenue accounting, land & contracts, and geotechnical systems. He manages projects that arise from changes in business requirements, the need to leverage technology opportunities, and mergers. His specialties include IT strategy, web strategy, and systems project management.
Share This:
