As artificial intelligence (AI) becomes more integrated into businesses, there are various risks that need to be managed. These risks include regulatory compliance, cybersecurity vulnerabilities, ethical considerations, and privacy concerns. Companies and directors must establish effective risk management strategies to avoid potential consequences. Introducing AI can lead to liabilities if not prepared for regulatory scrutiny or claims activity. Misrepresentation of AI capabilities and investments can result in legal challenges. Directors and officers are responsible for overseeing AI integration and understanding the associated risks. Transparent communication, training employees, and establishing decision-making protocols are crucial for managing AI-related risks and harnessing its potential while minimizing risk.