ESG Webinar – AI Strategy by GenAI Risk Slope

The Executive Study Group (ESG) webinar named “AI Strategy by GenAI Risk Slope” was held by Asia Pacific Institute for Strategy Limited (APIFS) on 6^th Aug 2025.  The 1^st part discussed challenge of GenAI adoption for teamwork. The 2^nd part mentioned AI as team members on “GenAI Risk Slope”, and the last part stated seven steps to climb the GenAI Risk Slope. 

Firstly, Dr. Mark Lee explained GenAI is part of AI (subset of AI) which learn from existing data to generate new information and various content.

Then he discussed six limitations of GenAI including accuracy, reasoning, understanding, action and unverifiable, as well as, judgment.  

Dr. Lee also mentioned some challenge for large-scale AI team collaborations because leaders focus on real value from LLM without replacing entire processes that is small scale transformation.

And then Dr. Lee briefed risk slop approach which employed in Hong Kong IT firms.

After that he introduced EU AI Act that defined four risk categories.

Dr. Mark Lee then used AI Act risk categories to develop the GenAI Risk Slope from low risk to medium risk and then to high risk.

There are five strategic advantages by using this approach including phased innovation, risk control, efficient investment, capability building and strategic agility.

In poll 1, he surveyed us what is the greatest challenge for organization. Data and Compliance Risk is the top choice upto 57%.

Then he quoted different cases including McKinsey Lilli which is in-house GenAI with more than 40 internal sources.

One of key step to reduce risk using GenAI is “Human-in-the-loop” model.

In poll 2, we were asked the best describe how our organization applying GenAI. Choice 1 and 2 had half portion. 

Finally, he described seven action steps to climb the GenAI Risk Slop from incremental approach to maintaining a long-term team perspective.

Lastly, Dr. Lee introduced APIFS would provide AI advisory based on academic studies. 

Reference:

Asia Pacific Institute for Strategy Limited (亞太策略研究所有限公司) – www.apifs.org

ESG facebook - https://www.facebook.com/groups/esg08

Leader 2030 - Empowering the Next Generation of Leaders - https://www.apifs.org/Leader2030-en

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Previous talks summary:

https://qualityalchemist.blogspot.com/search/label/Executive%20Study%20Group