State of Kuwait : KPMG International announced the launch of a set of principles for establishing governance practices in the field of artificial intelligence at the board level, which were developed in cooperation with INSEAD’s Centre for Corporate Governance, with the aim of establishing responsible governance practices for artificial intelligence at the board level, at a time when institutions and their boards are dealing with the increasing role of artificial intelligence in shaping business strategies, operational processes, and enhancing the role of the board itself .

The AI Governance Principles report at the board level combines KPMG’s rich expertise in AI, based on its close relationships with the business sectors, with specialized academic research provided by INSEAD, a leader in management education.

The latest findings from KPMG Global AI Pulse indicate that nearly three-quarters of boards of directors are perceived as having only moderate or limited expertise in artificial intelligence. The report also highlights that the role of boards will undergo a significant transformation as AI adoption grows. Technology, and AI in particular, will become a higher priority on board agendas due to its fundamental impact on business models, productivity, security considerations, and talent and workforce management strategies.

The report concluded that boards of directors need to develop a clear vision of how AI-powered decision-making mechanisms can be integrated with human decision-making to enhance clarity and transparency. Furthermore, the rapid advancements in AI will compel boards to reassess their organizations' success metrics and progress indicators, and adjust these metrics as needed.

The report draws on practical experience from board members around the world, ensuring that AI governance principles are both robustly designed and practically applicable. With the continuous introduction of new AI capabilities and the increasing complexity of regulatory requirements, the expectation is growing that boards will exercise vigilant oversight of how AI solutions are contracted, implemented, and monitored.

These principles were designed to guide boards of directors and executive leaders in dealing with the opportunities and risks presented by artificial intelligence.

Accountability and trust: two key priorities for boards of directors

As artificial intelligence moves into enterprise-level deployment, accountability and trust emerge as key priorities for boards of directors. It has become essential for board members to demonstrate a clear level of effective oversight and responsible supervision, ensuring that AI initiatives align with ethical standards and support long-term value creation.

Commenting on the new report, Ali Abbas, Partner and Head of Risk Advisory , said : “Kuwait is moving forward in adopting artificial intelligence technologies, particularly in the financial sector, supported by the regulatory framework led by the Central Bank of Kuwait, along with the Kuwait Investment Authority’s contribution to supporting global investments in AI infrastructure. As many institutions move from the pilot phase to large-scale implementation, the role of the board of directors becomes pivotal in ensuring that these investments translate into sustainable value. This report comes at a critical time, providing boards with the clarity and framework needed to balance opportunities and risks, and to govern AI with confidence and responsibility.”

These principles, which are not limited to a specific sector, are based on the latest research in technology governance and are globally applicable. Therefore, they are suitable for organizations regardless of their stage of AI adoption, and boards of directors can leverage them, along with regulatory requirements and local cultural considerations, when developing their own AI governance frameworks.

The five principles of AI governance at the board level revolve around the following :

1. Strategic focus on creating long-term value : by working in a new context that demands speed, experience, and achieving rapid results .
2. Effective technology and security oversight : by balancing the requirements of technological sovereignty, data security, cybersecurity, and artificial intelligence security with the flexibility, speed, and scalability offered by partnerships or outsourcing .
3. Workforce transformation and human accountability : by balancing productivity gains and effective, future-oriented workforce and competencies management, while preserving the role of the human element in decision-making .
4. Building Trusted Artificial Intelligence : By adopting standards for trustworthy artificial intelligence that reflect the organization’s values and organizational commitments .
5. Board work : By examining how artificial intelligence impacts the Board's oversight processes and governance practices .

In Kuwait, leading institutions in the financial services sector and other key sectors are integrating artificial intelligence (AI) into their core operations, from risk management and customer experience enhancement to data-driven decision-making. As AI adoption continues to evolve, governance and oversight will become increasingly important to ensure that AI delivers value in a responsible, transparent, and accountable manner.

Abbas concluded by saying, "This report provides a practical and timely framework to help boards of directors balance innovation, risk, and long-term impact."

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