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4 AI insights for executives, corporate boards

Ai in the Boardroom Cornell Keynote. Clockwise from left: Partners at Cleary Gottlieb Steen & Hamilton LLP James Hu, Angela Dunning, Chase Kaniecki, Lillian Tsu, Benet O’Reilly and D. Bruce Hoffman.

Understanding AI’s impact and ensuring its responsible implementation is essential for board members and senior executives looking to stay ahead in today’s fast-evolving corporate landscape. In a Cornell Keynote, legal professionals from Cleary Gottlieb Steen & Hamilton LLP shared what top management needs to know about navigating the opportunities and challenges AI brings to the boardroom.

  1. Navigating intellectual property (IP) challenges.

Many generative AI tools feature a public-facing platform in which users enter text prompts to generate new works, such as text, images or songs. However, because these AI models are trained on extensive datasets, often sourced from the internet, AI may create outputs based on copyrighted material.

There are currently around two dozen IP litigation cases in the United States concerning the training and output of generative AI models, including OpenAI’s ChatGPT and Google’s Imagen. “The key question is whether courts will find that the training of these models was fair use or infringing,” explained Angela Dunning, a partner who focuses on commercial litigation.

If the courts rule that AI training methods are not fair use, the development of these tools could change significantly, potentially affecting their availability and competitiveness, especially in the international market.

“The United States Copyright Office has taken the position that AI-generated outputs are not protected under U.S. copyright law because they are not authored by a human,” said Dunning. “This is now in conflict with some jurisdictions around the world, such as the EU’s AI ACT, which may impose restrictions on the use of copyrighted content for AI training and apply them to AI models globally if their output comes into Europe.”

As companies increasingly incorporate AI technology into their workplaces, board members should ensure that their companies have robust policies in place to mitigate IP risks, such as obtaining proper licenses for training data and regularly reviewing compliance with evolving laws. Proactively addressing these challenges can help protect the company’s innovations and preserve its competitive advantage in the market.

  1. Addressing SEC disclosure requirements.

Erik Gerding, director of the SEC Division of Corporate Finance, recently released a statement signaling AI as a disclosure priority for the SEC and compelling companies to be as detailed as possible in their annual reports, including identifying how the company defines AI and how the technology could benefit the company’s operational outcomes, financial condition and growth potential.

Specificity is crucial for general counsels and legal teams submitting AI disclosures to the SEC. “The SEC is focused on making sure that disclosures public companies make on AI and the opportunities it presents are tailored to that company rather than being a generic boilerplate disclosure,” noted Lillian Tsu, a partner specializing in securities and capital markets transactions.

Tsu also highlights the importance of attending to the material risks of AI technology, as the data that AI generates are predictions, not conclusions. “In other words, the disclosure should not be divorced from what is happening in reality,” added James Hu, a partner who focuses on merger and acquisition (M&A) transactions.

By adhering to these guidelines, companies not only comply with SEC requirements but also foster greater transparency and trust with stakeholders. Comprehensive and tailored AI disclosures reflect a company’s commitment to responsible innovation, offering a clear view of how AI integration aligns with the company’s strategic goals and risk management practices. 

  1. Understanding antitrust implications.

According to D. Bruce Hoffman, a partner whose practice focuses on antitrust enforcement, AI introduces four significant issues on the antitrust front: the use of AI for collusion, unilateral conduct, mergers and compliance with the Robinson-Patman Act.

The use of AI for collusion has garnered the most attention from antitrust enforcers such as the Department of Justice and the Federal Trade Commission due to concerns that AI systems could enable competitors to coordinate pricing or other market behaviors. 

“The Department of Justice has drawn an analogy stating that AI, in this context, is no different from a person. If competing companies were to send their cost data to this person who then instructed them to charge the same price, that would constitute collusion. This can potentially lead to antitrust trouble as well as exposure to civil problems,” said Hoffman.

Another issue is the role of AI in unilateral conduct, particularly in monopolization cases. AI systems could make decisions that, while rational, could be seen as anticompetitive if they harm competitors in ways that violate Section 2 of the Sherman Act. The challenge for antitrust enforcers will be determining when an AI’s autonomous actions cross the line from aggressive competition to unlawful conduct.

  1. Leveraging AI in M&A.

AI is quickly becoming a driver of M&A activities as companies look to strengthen their competitive edge. Benet J. O’Reilly, a partner specializing in mergers and acquisitions, notes that AI is a hot investment area, with firms either developing AI in-house or acquiring third-party tools to integrate into their operations.

This surge in AI-driven M&A is fueled by the need to stay ahead in a rapidly evolving technological landscape. Companies are not only seeking innovative technologies but also the talent and expertise behind them. “Talent acquisitions are crucial because they not only bring valuable technology in-house but also prevent that talent from being available to competitors,” explained O’Reilly.

However, integrating these AI-focused teams into larger, more traditional organizations can be challenging. Companies must strike a balance between maintaining the creativity and agility of these teams while aligning them with broader corporate objectives — a process requires careful planning and a willingness to adapt. 

As AI reshapes industries, M&A deals may become more prevalent, with companies increasingly turning to strategic acquisitions to build out their AI capabilities. For executives, understanding the complexities of these transactions will be crucial.

 

For more insights on approaching AI-related developments in the boardroom, experience the full Keynote “Artificial Intelligence in the Boardroom: What Board and Senior Executives Need To Know” on the eCornell website. 

This Keynote is part of  a series of discussions leading up to eCornell’s 2025 Board of Directors Forum. Register now for the opportunity to network and share best practices on cybersecurity, supply chains, data and AI, and earn a Cornell Tech Board of Directors Forum certificate from Cornell Tech.

 

Photo: Clockwise from left: Partners at Cleary Gottlieb Steen & Hamilton LLP James Hu, Angela Dunning, Chase Kaniecki, Lillian Tsu, Benet O’Reilly and D. Bruce Hoffman.

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Certificate program primes professionals for risk analysis in business

Computer mainframe lit up by blue light. Small dots of red and yellow punctuate the rest of the mainframe with several computer chips.

Every company and venture comes with risk. In eCornell’s Risk Analysis certificate program, developed by Linda Nozick, director of the Department of Civil and Environmental Engineering at Cornell, professionals learn how individuals and businesses can avoid, mitigate, share and diversify risks. The certificate includes four key modules: risk analysis foundations, risk evaluations, risk modeling and risk perception.

In a recent conversation with eCornell, Nozick discussed how the program charts out risk in a quantitative and statistically focused manner.

How do we quantify risk?

“Measuring risk is actually really difficult. It is one thing to say: Something’s risky. But once you have to ask ‘how risky,’ you have this question of how to put that risk in context with other risks. And we can talk about this really in an interesting way, when we think about valuing human life or how we handle risk in the public sphere. We make very different decisions about investment for risk mitigation on the highway system than we do in a nuclear power plant. You see the massive difference in funding. We try to illustrate that by looking at specific application domains and statistics with understanding that probability distribution. How likely is an outcome and how bad is it?”

What is risk perception and how does risk attitude affect decision making?

“Risk has a lot to do with how people interpret things, and we don’t interpret them all the same way. And so I think it’s important in the risk space to kind of understand how your perceptions, your attitudes toward risk make you more vulnerable to risks or help you mitigate risks. Somebody who’s really risk prone doesn’t worry so much about risk, and they take more risks than their company would like them to. You are trying to understand how risk attitudes affect decision making. Attitudes actually do drive how you make choices . . . that’s really what this whole thing is about: How does your mental headspace impact your decision making when it comes to risk?”

Is this course content constrained to risk professionals?

“Not at all. This course really is agnostic with respect to the application domain. We talk about financial risk. We talk about health risks. We talk about all sorts of risks. There really is that opportunity to see the applications across different types of business professionals and roles and industries, which could really give folks interesting perspectives and a lot of fundamentals as they’re changing careers or moving up in their career.”

Equip yourself with the tools to identify risks and apply strategies that protect you and your hard work — no matter your industry — in eCornell’s Risk Analysis certificate program. Learn more and enroll now.

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Leaders examine global economic risks in International Business Law certificate program

Gavel in foreground, world map in background.

From repeat wholesale international transactions to the one-time hire of a consultant abroad, companies of all sizes must now understand the liabilities they might take on during global business operations. Celia Bigoness, a clinical professor at the Cornell Law School and director of the Blassberg-Rice Center for Entrepreneurship Law, developed eCornell’s International Business Law certificate to help professionals understand and mitigate business risks. Bigoness recently discussed her online certificate with the eCornell team.

Why would a ‘domestic business’ need an understanding of international law?

“We tried to make sure that this course would be relevant for a whole variety of companies and individuals, including many who may not think they are necessarily involved in cross-border transactions. So, for example, there’s a module on dealing with tariffs — you could be in a company that thinks that what they do is purely domestic, but the [company] may import products or be looking to import products in the future. There could be cost implications there, and they [need to] understand how to deal with tariffs.”

What tools can businesses use to protect themselves from liability?

“Professionals should be able to look at a particular business strategy or a particular question or set of facts and be able to identify the red flags there, to be able to ask: How is [hiring a consultant in Venezuela] different from hiring a consultant in New York state? What are the risks that a business takes on when it is operating outside of its home environment? And how can that business begin to identify those risks, prioritize them and figure out which risks are acceptable and which risks are not. And then, as a practical matter, once you’ve said the risks are not acceptable, ask ‘what do we do about it?’ That’s where we get into a specific sort of contract techniques and other ways outside of a contract in which a business can protect itself. For example, getting insurance against a specific foreign risk.”

How does the course respond to an evolving geopolitical world?

“We rely heavily on a case study method … and we focus particularly on political risks. What if you are doing business in a country that has a change in leadership which is hostile to working with Americans, or, more broadly, more hostile to working with foreign investors. [The government] may decide that it wants to take action against foreign investors, and that action could be everything ranging from expropriation at the most extreme level to something that is much more common, such as raising taxes or saying you can no longer send American workers. What do you do? What rights do you have as a U.S. business when a foreign government seeks to put pressure on you?

Gain the tools to understand your business’ place in the increasingly globalized world in the International Business Law certificate program from Cornell. Learn more and enroll now.

Quotes have been edited for length and clarity.

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Cornell Keynotes podcast: AI today – laws, ethics and protecting your work

Abstract multi-colored objects on blue background

Understanding the ethical and legal use of AI is important for any business. In a new episode of the Cornell Keynotes podcast from eCornell and the fourth installment of the “Generative AI” series, Cornell Tech professor Karan Girotra pairs up with professor Frank Pasquale from Cornell Law School to discuss the laws and ethics of generative AI while looking at performance guarantees as well as unintended consequences and outcomes.

The conversation highlights how organizations in finance, health, education, media and manufacturing are using these technologies in clever ways and charts a path for the next generation of use cases — ones that go beyond using assistants to enhance individual productivity.

Read more on the Chronicle.

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Cornell Keynotes podcast: Real estate right now

Four speakers on screen during a virtual panel

Post-pandemic real estate markets present many interesting opportunities, despite their ongoing challenges. While “back-to-office” efforts remain weak in many urban cores, those same downtowns are experiencing booming retail, entertainment and cultural visitation.

In a new episode of the Cornell Keynotes podcast from eCornell, Associate Professor Emeritus Jan deRoos and senior lecturers Jeanne Varney and Daniel Lebret from the Cornell Nolan School of Hotel Administration explore the forces driving real estate market trends and delve into recent efforts to convert “office-to-anything-else” spaces.

Read more on the Chronicle.

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Master active listening to enhance decision-making

Four people, two men and two women, are gathered around a table covered with various supplies, such as notebooks, pens and coffee mugs. They are looking at two large whiteboards filled with colorful sticky notes. Picture a colleague grappling with a tough decision — they’re probably feeling the weight of uncertainty and pressure. In such moments, it’s tempting to step in with solutions or advice. But real support means resisting that urge, putting your own ideas aside and listening carefully to understand their concerns, priorities and the help or reassurance they seek.

In the Cornell Keynote webcast “Active Listening: Supporting People During Difficult Decisions,” Cheryl Strauss Einhorn, an adjunct professor at the Cornell SC Johnson School of Business and Cornell Tech, shares the four types of active listening and how utilizing them can support decision-makers.

What is active listening?

“There are two kinds of listening: passive and active. In passive listening, the responder is just taking it in, and the person speaking may not get any feedback. We don’t have a sense of whether or not the responder really got what we meant to say. Conversely, active listening is the practice of making sure you make the other person feel heard. You’re listening for cues in what they’re saying so that you can respond, not from your vantage point, but from the vantage point of what they’re truly inquiring about.”

Why is active listening essential in the decision-making process?

“Decision-making is a holistic process, and for too long, we’ve been under the impression that our decisions are ours alone. For our decisions to truly succeed, we need to be able to take into account other stakeholders’ viewpoints, which means actually asking them questions. What to ask is going to stem from what it is they’re talking to us about.

I was interested in coming up with a framework for listening to people and then asking questions that show we are responding to what they’re asking. And, if we’re unsure what that is, how can we further open up the conversation to ask them what they mean.”

What are the four types of active listening support?

“The four types of active listening I discuss are emotional, informational, analytical and reflective.

  1. Emotional support is listening with empathy, making space for the emotion and doing it without judgment.
  2. Informational active listening is about providing the information the other person needs, whether it be knowledge, facts or data.
  3. Analytical support helps them to interpret and understand what they’ve already gathered and how the information can be synthesized into something that has meaning.
  4. Reflective listening is really about mirroring. How often has someone come to you, and you think, ‘I believe they already know the solution.’ By asking questions that mirror what they’re saying, you help them prioritize and clarify their own thoughts.”

How can each type of active listening help support decision-makers?

“Emotional support can benefit the decision-maker by validating their feelings and making them feel heard. You may hear the other person say, ‘I feel,’ and you could respond with, ‘That sounds difficult,’ or ‘I hear your frustration.’ You listen for the cue the other person is giving and respond without bringing judgment to their emotion.

A decision-maker in need of informational support will ask if you have the information they need available. If you do, you can provide it. Otherwise, you can ask what information or data would be useful for them at this point. In a professional setting, speaking to what a decision-maker is asking for makes them feel like you are truly collaborating and giving them the support they need.

When offering analytical support, you can listen for something like ‘How would you interpret’ or ‘What does this mean?’ In these instances, somebody is asking for some kind of interpretation or synthesis. If you think that you have that at your ready, terrific. If not, you could say, ‘What kind of analysis would help you think this through?’ so that you can be directly responsive.

Reflective support helps decision-makers clarify their own thoughts and priorities. You might hear a decision-maker say, ‘I can’t decide’ or ‘I’m conflicted.’ This does not mean they’re asking you to decide for them. You can ask them back, ‘What’s the goal you want to achieve?’ or ‘What’s your priority here?’ and that can help them to bring forth again their own priorities and a solution that they already may have in mind.”

What are some common challenges people face when practicing active listening, and how can they overcome them?

“The toughest thing to remember when actively listening to another person is that you are not the decision-maker. The idea that the other person is a capable decision-maker and their decisions are their own is very important, and one way to pair active listening with this idea is to simply pause. We’re so trained to jump right into conversations that it feels unnatural to take an extra beat, but waiting for a moment to consider what the other person is trying to convey and having that metacognition come forward is going to make it easier for you to be in service to the other person.”

How do you see the principles of active listening evolving in the future to support decision-making across different industries?

“One of my recent research projects, which we discussed during an earlier eCornell Keynote, identified five different ways people approach decisions, each of which has a different underlying value structure. This means individuals are optimizing for different things in their decision-making process. Once you can identify which problem-solver profile somebody is, the act of listening becomes much easier.

For example, if you know someone is a ‘detective’ — like I am — when you come to them with an answer, they’ll want to see the data that supports it. So, if you say to me, ‘Cheryl, this is the evidence I have that supports this hypothesis, and I think we should move in that direction.’ I am going to feel so appreciative that you recognized my need for evidence and allowed me to assess whether that evidence makes sense to me.

That is a great way that I’ve seen companies and teams really bring this idea of active listening forward to streamline decision-making, build trust between team members and increase productivity by aligning communication styles with individual problem-solving approaches.”

Interested in learning more? Discover how you can leverage your problem-solver profile to tackle challenging problems in the Complex Decision-Making certificate program, authored by Cheryl Strauss Einhorn.

This Q&A has been edited for length and clarity. Experience the full Keynote “Active Listening: Supporting People During Difficult Decisions” on the eCornell website.

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Professionals apply techniques for digital transformation in AI certificate program

AI has broadened how companies integrate technology and digital transformation into their operations. For Karan Girotra, the Charles H. Dyson Family Professor of Management in the Cornell SC Johnson College of Business, AI prompts questions about a new wave of automation..

The AI for Digital Transformation certificate program, authored by Girotra, combines academic theory and practical executive experience in business and technology into one seamless journey through the new opportunities and potential pitfalls that AI brings. Girotra explains how businesses can utilize these new tools for success through data collection and experimentation. The program concludes with tips for encouraging a culture of learning and leadership through AI.

Girotra discussed the power of data-driven AI enhancements and digital transformation in a recent conversation with eCornell.

How essential is learning AI for professional development right now?

“That really comes down to the question: How is the world going to change [from this breakthrough]? We’ve seen from previous generations of automation that when we automate physical work, the new efficiency forms a pattern. This time, the automation of cognitive language work allows us to benefit in certain ways, including increasing productivity of individuals and organizations. People who don’t work on implementing these ideas risk being left behind and won’t reap the benefits of automation.”

How have you worked to make digital transformation, specifically with AI, accessible for a general audience?

“The program is not basic in ambition, but it is basic in style. The technical language is minimized, and [the courses] do not use jargon. In fact, there is a whole module that I call ‘Cut through the techno babble.’ So it’s designed to be extremely accessible.”

With AI constantly evolving, does this course have longevity in its application?

“Right now, there are so many hyper-specific courses in the AI boom. You have marketing with AI or trading with AI or one of a million other subspecialties. The problem with specific versions is that they change and lose their value with [any procedural innovation]. But if you learn AI more generally – what it can do for any role – then you can invent new ways to use it without copying the current ways people are using it. In a way, there’s a trade-off. When you get more narrow, AI becomes more relevant [for current issues], but it becomes less useful as the world changes. With this course, we teach the conceptual knowledge behind AI in digital transformation to let individuals chart their own procedures in a changing environment.”

Keep pace with the rapid advancements in AI and digital technologies in the AI for Digital Transformation certificate program. Learn more and enroll.

Quotes have been edited for clarity.

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Learners apply data-driven marketing strategies in Cornell certificate program

Marketing can sometimes feel abstract and uncertain, yet professionals in the field must meet the challenge of justifying their expenditures and linking them to key performance indicators each day.

Sachin Gupta, the Henrietta Johnson Louis Professor of Management at Cornell’s SC Johnson College of Business, shares his statistics-based and data-driven approach to getting outstanding returns in his Demand Marketing online certificate program from eCornell.

Gupta recently spoke with the eCornell team about the program.

How do you embark on the process of data analysis in marketing?

“The data is typically collected in a survey-based setting online where you recruit participants in the study. When we come to the analysis of the data, that’s where the statistics kick in. The analysis is done using a model that is likely to be unfamiliar to most people. In the program, I explain that analysis in some detail. I demonstrate how to use R programming language to analyze data, interpret the findings and make decisions based on the results.”

How can marketing data influence decision-making?

“These decisions might involve product design choices for items like cell phones. Consider battery life as a feature: How should changes in battery life be tailored to meet demand? Similar considerations apply to pricing, which hinges on consumer willingness to pay for enhanced features. For instance, if you offer phones with a 12-hour battery life and phones with a 6-hour battery life, you must assess consumers’ willingness to pay for the extended battery life and use that information to determine pricing strategies.”

How can historical data inform future marketing decisions?

“When focusing on return on investment for your different marketing activities, you have to look back on historical data where you have sold the product, employed some marketing activities and spent money. This approach highlights what worked and to what extent and, therefore, comes up with a measured ROI. That’s a backward-looking accounting perspective from which information can be used to make better decisions in the future.”

What is the most critical information in digital advertising that drives decisions?

“The idea of attribution is pervasive in the industry. It involves analyzing spending on various digital channels like Facebook, LinkedIn, Google and others to accurately attribute or assign credit to the platforms and campaigns that are actively driving your conversions and sales.”

Applying these analytical techniques can assist you in crafting cost-effective marketing strategies that align well with demand. Sachin Gupta’s Demand Marketing certificate program is open to professionals who possess a foundational knowledge of statistics and Excel. Learn more and enroll now.

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Family business owners strategize for longevity in new certificate program

Workers review documents while standing in front of items on a store shelf

For Joseph Astrachan, a co-author of Cornell’s Family Business Leadership online certificate program, a family-run business is a generational tradition. Since Astrachan was young, his family has operated businesses in fields ranging from pharmaceuticals to shipping. He is no stranger to the difficulties that come with owning a company tied to the fabric of a family, including managing close relationships in the face of business challenges.

With Daniel Van Der Vliet, executive director of the Smith Family Business Initiative within the Cornell SC Johnson College of Business, John Engels, president and CEO of Leadership Coaching Inc. and Holly Isdale ‘86, founder of WealthHaven, Astrachan has blended academic theory and industry practice in a certificate program that helps others navigate the obstacles and opportunities of running a family business successfully.

“There is no way around it: Navigating a family business is distinctly different from the traditional corporate model,” said Astrachan, a Professor Emeritus and former executive director of the Cox Family Enterprise Center at Kennesaw State University’s Coles College of Business.

The certificate program uses a hands-on approach to address how the personal and professional overlap in family businesses. Courses include:

  • Family Business Leadership Fundamentals
  • Managing Family Relationships
  • Stewarding Family Wealth and Values
  • Implementing Family Governance Systems

Just like with any other business, management in a family-run venture evolves over time. For family businesses, there is often an added layer of grief associated with leadership changes. Sometimes assumed agreements and familial relationships complicate these transitions.

“Continuing a family-run business requires perpetuation through transition, passing it from one generation to the next,” Van Der Vliet said in a recent conversation with eCornell. “Even though all business begins with family . . . some of this expertise around family business does not exist in academia. Family business is very specialized.”

To help learners understand the nuances, the Family Business Leadership program combines advisory parties – like lawyers and accountants – and family members into one cohesive group of learners. The courses organize behaviors in family businesses into familiar workplace relationships and help make sense of common patterned dynamics. Learners gain practical insights they can immediately apply to their own operations.

“Family members are not asked to share anything deeply personal,” Van Der Vliet said. “Their projects could become more personal if they choose, which can be beneficial for their takeaways from the course… and for those that are not family members in the family business, on the advisory or service side, they can have an opportunity to realize [how family dynamics] broadly affect the company.”

Discover how to manage relationships, steward wealth and implement governance structures in Cornell’s Family Business Leadership certificate program. Learn more and enroll now.

Quotes have been edited for clarity.