The increasing pace of AI development raises discussions related to ethics, transparency, accountability, and compliance of AI. Use this scorecard template as a starting point to build a governance dashboard for AI.
AI is a fast developing technology that, along with adding impressive functionality, generates new risks1 2 3. Besides cybersecurity risks, the regulatory landscape is becoming more complex, requiring AI development and implementation to adhere to new regulations such as the European Union Artificial Intelligence Act.
The AI governance framework is designed to introduce the best management practices related to AI implementation and use in the organization.
Overview of the Template
The template includes generic metrics and examples of initiatives for the AI governance scorecard. Similar to other business domains, we don’t recommend re-using the template without modifications. All companies are unique, so our recommendation is to use the template as a starting point for your analysis, adapting it to the reality of your organization.
- If your company is in the early stages of adopting AI technologies, check out this AI readiness scorecard.
Themes of the Scorecard
The example template of the AI Governance and Risk Management scorecard organizes goals and metrics according to these themes:
- Ethical AI Development and Use
- Transparency for the Stakeholders
- Accountability Policies
- Compliance
- Continuous Monitoring and Evaluation
There is no one accepted standard of AI governance; once you have a template in your account, feel free to customize the themes according to your needs.
Identify Risks
A scorecard template includes some goals and initiatives. To have a balanced view of the AI governance landscape, we need to define the risks.
For example, the template includes “Inherent Bias in Training Data” aligned with the “Minimize Bias in AI Systems” goal in Ethical AI Development and Use.
Visualization
The template includes an example of an AI governance dashboard that features some key metrics, a risk heat map, individual risk diagrams, and diagrams with the list of goals and initiatives.
This dashboard is fully customizable and can be powered with data from the indicators of the scorecard.
Upload Evidence
The metrics in the template have some basic configurations that can be adapted to more complex needs and workflows. For example, a typical case is when a certain reporting standard requires attaching evidence.
This can be automated using the evidence formula. For example, we can activate it for the indicator “Number of accountability audits conducted per year” aligned with “Regular Accountability Audits,” so that the indicator would change its value when a new audit report is uploaded.
Controls Library
Some indicators in the template imply the existence of certain controls. For example, “Develop and Implement Incident Response Plans” aligned with the “Accountability” category implies the existence of the response plans.
In addition to having plans in textual form, we can organize them as specific controls in the library of controls. In case of an incident, such controls can be easily activated.
Continuous Monitoring
One of the themes of AI governance is continuous monitoring of the state of AI. Most of the metrics from the scorecard template imply the need for continuous monitoring.
For example, the “Audit Compliance Rate” indicator aligned with “Regular Accountability Audits” is configured for monthly updates and has data for the reporting periods.
The update intervals, as well as the behavior of the indicator for the periods when specific data is not available, can be configured via the Values Editor.
Ownership
In the “Transparency” theme, we underline the need to assign owners to certain AI controls and make the AI mechanics transparent for the stakeholders.
Use the “Owner” field for the metrics to assign owners and stakeholders. This will facilitate the reporting of the scorecard and ensure that owners receive notifications about relevant updates for the goals, indicators, and initiatives.
Reporting
Regular reporting on schedule can be introduced to keep the key stakeholders informed. Below are examples of reports in PDF format that can be generated using the AI governance scorecard.
- AI Governance – Overview Report [PDF]
- AI Governance – Initiatives Report [PDF]
- AI Governance – Dashboards Report [PDF]
AI Governance is a Functional Scorecard
In the strategy deployment system, we defined the strategic and functional/supporting scorecards.
While AI as a technology can form a part of strategic goals, we consider the AI governance scorecard to be a functional or supporting scorecard.
Alignment with Other Scorecards
Some indicators in the scorecard template can be aligned with other scorecards. For example, the “Time to Incident Resolution” aligned with the “Monitor AI systems for security vulnerabilities and threats” goal can obtain its data directly from the “Cybersecurity” functional scorecards.
Start Accumulating Strategy-Related Data Today
In the foreseeable future, the capacity of AI to process vast amounts of data will benefit strategists. The question is:
Will your organization possess data suitable for training future AI bots?
One actionable step you can take today is transitioning to specialized strategic planning software. This ensures that you can use your strategy’s digital footprint in the future to train your customized AI effectively. Learn more about preparing strategic planning for AI.
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Start Adapting the Template to Your Needs
Users of BSC Designer can access the template directly from their account:
- Create a free account with BSC Designer
- Navigate to New > New scorecard > More templates
- Find the “AI governance” template
- Sign up for a free account at BSC Designer to access the scorecard templates, including 'AI Governance Scorecard' discussed in this article.
- Follow our Strategy Implementation System to align stakeholders, strategic ambitions, and business frameworks into a comprehensive strategy.
More About Strategic Planning
- AI Is Generating Security Risks Faster Than Companies Can Keep Up, Belle Lin, WSJ, 2023 ↩
- Multilayer Framework for Good Cybersecurity Practices for AI, European Union Agency for Cybersecurity, 2023 ↩
- What are the AI security risks?, Ciber 4 All Team, 2023 ↩
Alexis is a Senior Strategy Consultant and CEO at BSC Designer, with over 20 years of experience in strategic planning. Alexis developed the “5 Step Strategy Implementation System” that helps companies with the practical implementation of their strategies. He is a regular speaker at industry conferences and has published over 100 articles on strategy and performance management, including the book “10 Step KPI System”. His work is frequently cited in academic research.
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