Artificial intelligence has a great capacity to reshape board governance, fiduciary responsibility and organizational performance, the Teachers' Retirement Board heard from Param Vir Singh, Ph.D., associate dean for research and Carnegie Bosch professor of business technologies at Carnegie Mellon University.

To achieve the best results in governing CalSTRS, Singh said, the board needs to become fluent in AI. Every board member should have some knowledge of what questions to ask and how to assess risks, Singh added.

This does not mean learning to code or even how to use AI. Rather, it means knowing which questions to ask and having a basic understanding of how to evaluate and apply AI tools to solve problems.

Among the key questions the board should be asking, according to Singh are:

• How do we make better decisions with this technology?
• Which technology tools will help accomplish our goals?

AI strategy is not separate from organizational strategy, Singh said. It can be used to inform, but humans still make the decisions that help CalSTRS meet its organizational goal of securing the financial future of California's public school educators.

This was the second AI presentation to the board this year. CEO Cassandra Lichnock said CalSTRS staff will present a comprehensive report with recommendations, including a framework to clarify the board's responsibilities in overseeing AI, at the May meeting.

Last October, the board launched a collaborative board-and-staff Technology-AI working group. The group’s purpose is to define the board's role in overseeing technology and artificial intelligence at CalSTRS. This initiative will help the board focus on board-level governance and oversight and not on individual AI tools.

The board will continue to hold more AI education sessions and discussions about how to ensure strong rules that govern how AI is used moving forward.