SID's new guide helps boards assess the value and risks of AI

Nurdianah Md Nur07-31

Developed with OpenAI and Microsoft, the new guide by SID covers how boards can pursue returns from AI while overseeing its wider strategic, operational and governance risks.The Singapore Institute of...

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Yet, many organisations that have successfully developed proofs of concept still struggle to deploy them across their operations.\nDeveloped with OpenAI and Microsoft and supported by the Infocomm Media Development Authority (IMDA), the guide provides directors with a framework and questions for assessing the opportunities and risks presented by AI. It covers issues including corporate strategy, investment returns, governance and management oversight.\nAt the launch, SID's vice chair Max Loh says: \"AI will undoubtedly transform organisations and industries, but whether that transformation creates sustainable value will depend not just on technological advancements but on leadership and governance. As directors, our role is not simply to respond to change, but to lead it responsibly.\"\nHe continues: \"This AI guide builds on [SID's Cyber Resilience Guide for Boards launched last year], recognising that AI governance is now becoming an equally important responsibility for boards. Our commitment is to equip directors with a practical resource that helps boards ask better questions, make better decisions, and govern AI with confidence while optimising the value which it delivers.\"\nKeeping oversight in step with adoption\nAlso speaking at the launch, Minister for Digital Development and Information Josephine Teo highlights a governance challenge that may already exist inside companies. Employees' personal use of AI is often more advanced than adoption within their organisations, giving businesses an opportunity to use those capabilities while making formal oversight more important.\nFor instance, companies need to document how employee-built AI tools work, particularly when they interact with customers or suppliers. They must also consider who will maintain those tools if their creators leave. \"What the individual can bring to the workplace must somehow come within institutional guardrails,\" says Teo.\nShe adds that the Singapore government currently favours providing frameworks, principles, guidelines and practical tools over imposing mandatory requirements while the technology and its risks continue to evolve.\nHowever, knowledge remains a key challenge for directors applying such guidance, states Terence Quek, a partner in Heidrick & Struggles' Singapore office and a member of its global CEO & Board of Directors Practice. Only half of Asia Pacific respondents were confident in their organisation's ability to manage AI, according to Heidrick & Struggles' 2026 CEO & Board Confidence Monitor.\nSID's new AI guide seeks to address that gap by translating Singapore's National AI Strategy 2.0 into actions for boards, including how directors can use IMDA's AI governance frameworks when setting controls and overseeing adoption.\n\"As AI continues to advance, boards need to constantly learn, relearn and unlearn so their understanding of its potential and risks keeps pace. They must also consider whether the board's composition brings together the collective expertise needed to oversee AI effectively, and whether the organisation has the necessary leadership capabilities to deliver sustainable performance and transformation,\" says Quek.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":false,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"isVideo":false,"video":null,"symbols":[],"gpt_button":0,"need_auth":false,"need_login_tip":false,"code":"91000000","status":"200"},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"isLaohu8Offline":false,"tenantId":"TBGLOBAL","deviceId":"web-server-community-laohu8-v3","version":"4.47.1","shortVersion":"4.47.1","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2656978395","isCrawlerRequest":true}