If artificial intelligence takes your job, the Government could pay you an income purely for being human - that’s the future this economist expects as tech companies talk up AI in this week’s earnings. Video / NZ Herald
After years of assessing the environmental, social and governance impact of the companies they direct, chairs are now being forced to consider artificial intelligence and its impacton the economy and workforce.
So, how should they plan for something they likely understand little about?
Forsyth Barr managing director Neil Paviour-Smith advises chairs to not become overwhelmed by it, ensure it’s in their strategy and surround themselves with technological expertise.
“There’s a risk of catastrophising the threat of AI,” he told the Herald.
“Remember 30 to 40 years ago, the view was that computers were going to eliminate office jobs. What they did was change the scope of people’s jobs and become a boon to productivity.”
He encouraged chairs of company boards to “focus on the potential as much as the threats and risks” and ask themselves questions about both.
“What opportunities does AI present to deliver a better product or service or to reduce costs?
“What threats does this pose to our existing way of operating and the competitive landscape? What new risks emerge from this latest technology, such as the effect of disinformation?”
Paviour-Smith spoke about board consideration of artificial intelligence ahead of this year’s Deloitte Top 200 Awards - Forsyth Barr is the sponsor of the Chair of the Year award, with the winner to be revealed on December 6.
This year’s finalists are David Carter, chairman of engineering consulting company Beca, Rob Hewett, chairman of Silver Fern Farms, and Scott St John, chairman of Fisher & Paykel Healthcare.
Beyond AI, Paviour-Smith said a good chairperson should also be planning for, and asking questions about, succession planning.
“Ask what the plan would be for sudden change - just as most companies have business continuity and disaster recovery plans. What would you, and each [member] of the board or executive [team], take responsibility for if you had to do so suddenly?”
The board and executive team should be considered collectively, he said.
“Having a chief executive and chair leave at around the same time is not ideal, but is not uncommon.”
Despite the issue of the day, a great chairperson can be firm when required, fronts up to issues and is constantly passionate about the business they were leading.
“Those that stand out to me are those who can support, motivate and inspire the leadership team,” Paviour-Smith said.
The basics went a long way too, with efficiency and organisation valuable skills to lead a company’s board.
Bottom line, it came down to knowing the business a chair was directing, and enjoying it.
“A great chairperson must be passionate about the business they chair.”
The Deloitte Top 200 Awards were established in 1990 and are held annually to recognise and applaud outstanding individual and management team performances among New Zealand’s largest companies and trading organisations.
Last year’s winner of the chair award was Mark Verbiest, chairman of Meridian Energy and Summerset. Watch an interview with him on Markets with Madison tomorrow.
All the Deloitte Top 200 winners will be revealed at a gala event on Wednesday, December 6. The event will be live-streamed from 7pm on the NZ Herald website.
Chairperson of the Year finalists - Sponsored by Forsyth Barr
David Carter, chairman of Beca Group.
Rob Hewett, chairman of Silver Fern Farms.
Scott St John, chairman of Fisher & Paykel Healthcare.
- This was produced in partnership with the Deloitte Top 200 Awards and sponsors
Madison Reidy is the host of New Zealand’s only financial markets show, Markets with Madison. She joined the Herald in 2022 after working in investment and has covered business and economics for television and radio broadcasters.
