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Tech Governance Series
In this series of articles, Gráinne Boyle (Partner, International Business, Corporate), Catherine Carrigy (Senior Associate, International Business, Corporate), and Elaine Hayden (Solicitor, International Business, Corporate), together with Marie McGinley (Partner and Head of Technology & Innovation) and Stephanie McCarthy (Associate, Technology & Innovation), provide an overview of the key governance considerations arising from recent and upcoming EU tech-focused regulations. The focus is on what these regulations specifically mean for board oversight and responsibility, rather than outlining the broader technical compliance obligations introduced on companies generally.
Introduction
The adoption and deployment of AI systems is rapidly transforming business operations and creating significant opportunities to realise efficiencies and enhance performance across organisations. Simultaneously, national and EU legislators have introduced regulatory frameworks to govern these technologies. Strong corporate governance practices are needed now to mitigate risks, to ensure companies are ready to meet the requirements of new and emerging legislation, and to create frameworks that can adapt as these technologies evolve. In this dynamic regulatory landscape, companies cannot afford to take a “wait‑and‑see” approach.
Boards of directors are responsible for setting the strategic direction for AI use, overseeing compliance readiness, and monitoring the key risks and challenges that may arise as the regulatory landscape continues to develop.
This article offers an overview of some of the critical areas that boards should consider in their oversight of AI, and which should inform meaningful, robust discussions in boardrooms.
Existing legislative framework
As a general comment, there is currently limited legislation, either in force or expected in the near term, that prescribes detailed corporate governance obligations specifically aimed at ensuring AI compliance in relation to many company’s existing AI practices. While the two pieces of legislation outlined below will have relevance for AI governance, the core principles of good corporate governance and existing Irish law will remain particularly significant:
The EU AI Act
The EU AI Act (the “Act”) is the EU’s fist comprehensive framework regulating AI and is directly applicable across the EU. While the Act entered into force on 2 August 2024, it will enter into effect on a phased basis with all provisions scheduled to be effective by August 2027. The Act introduces a risk‑based framework governing the development and use of AI systems within the EU. It also establishes significant regulatory obligations, elevating AI governance to a matter of strategic and board‑level responsibility.
The General Scheme of the Regulation of Artificial Intelligence Bill 2026
The Irish government recently published the General Scheme of the Regulation of Artificial Intelligence Bill 2026 (the “AI Bill”), which seeks to implement the Act. The AI Bill proposes to: (i) establish a new independent authority, Oifig Intleachta Shaorga na hÉireann1, or the AI Office of Ireland; and (ii) set out the penalties for infringement of the Act.
Tip: In addition to AI‑specific legislation, boards should be also mindful of discharging their duties as directors under Irish law generally.
Key board considerations
Directors are not expected to become technical AI experts in order to discharge their duties in relation to AI governance. Rather, they can strategically delegate authority to the appropriate specialist risk, compliance and technical teams to implement:
- appropriate controls to maintain ongoing compliance and oversight; and
- risk management frameworks to identify, manage and monitor material risks.
Working closely with specialist teams to develop governance frameworks to ensure that the AI systems deployed align with the company’s key values and strategic objectives is essential for risk management and compliance in the current regulatory landscape.
While not exhaustive, the following are some of the key areas we recommend that boards consider and engage with their stakeholders on to ensure effective governance and compliance.
To view the full article please click https://www.matheson.com/insights/ai-governance-key-board-questions/ here.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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