In a Law360 expert analysis, Mike Bongiorno, Tim Perla and Jessica Lewis examine how Delaware courts are likely to apply established Caremark principles to board oversight of artificial intelligence risk. The authors review recent Court of Chancery decisions, outline factors that may shape how courts assess AI oversight claims and identify considerations for companies as AI becomes more embedded in core business functions.
Excerpt: “AI systems often operate as so‑called black boxes, making it difficult to understand how decisions are reached, what inputs are determinative or why a model behaves as it does. This complicates internal monitoring and post-incident diagnosis and can make it harder to credibly address issues and reassure regulators, customers or courts when problems arise.”
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