Key Performance Indicators (KPIs) and Board Oversight for AI-Driven Decision Systems

Abstract

The proliferation of Artificial Intelligence (AI) systems across critical sectors has led to a paradigm shift in organizational decision-making, regulatory expectations, and societal risk landscapes. AI-driven decision systems now influence domains as diverse as healthcare, finance, defense, and public policy, embedding themselves deeply into the operational fabric of modern organizations. With this growing integration comes an urgent need for effective governance mechanisms to ensure these systems deliver value while minimizing risks—ethical, operational, and existential. At the forefront of these governance mechanisms are boards of directors, whose oversight responsibilities are increasingly being redefined by the complexities of AI technologies.