Thinking About AI—Considerations for Boards of Directors

In her article titled "Thinking About AI—Considerations for Boards of Directors" published in The Investment Lawyer's November issue, Molly Moynihan provides clarity on AI, explores its potential impact on fund operations, discusses its applications and regulatory framework, and offers considerations for directors overseeing funds and advisers.

Since the public launch of ChatGPT in November 2022, artificial intelligence (AI) has become the latest new technology craze. While chatbots are certainly fun to play with, hallucinations and all, many directors are seeking to understand how, if it all, this technology will impact the day-to-day operations of the funds they oversee. This article seeks to demystify AI, through providing a brief primer on the topic. It then discusses (1) applications for AI in our industry, (2) the regulatory framework surrounding AI, and (3) considerations for directors in overseeing funds and advisers as AI is deployed across the industry