As companies race to develop artificial intelligence strategies, boards are beginning to work AI deployment into incentive plans. What that looks like is all over the place.
This year, AI is mostly making a mark on executives' compensation plans at tech-centric companies, like Microsoft, Oracle and Palo Alto Networks. Sources said other industries will likely follow suit in the future.
Compensation committees should be wary of how they go about doing that, because ill-conceived incentive metrics could prompt executives to rush through the AI adoption process haphazardly. In some cases, AI can play a role in incentive planning without its being used as an explicit measure, sources told Agenda…
… The company's rate of AI adoption is important to consider, said Dan Moynihan.
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