What happened
An independent AI investment risk assessor, Dilip Kumar Astik, articulated that boards currently operate without clear, defined criteria for evaluating the delivery and performance of AI investments. This condition limits the board's capability to effectively oversee and ensure the successful implementation and expected outcomes for AI projects, indicating a pre-existing gap in established governance frameworks for technological capital allocation.
Why it matters
This condition introduces an increased oversight burden for board members and investment committees, who now face heightened exposure to underperforming AI investments without explicit performance indicators. It weakens the control over capital allocation for AI initiatives, reducing visibility into project success metrics and increasing the due diligence requirements for strategic technology procurement.
