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In its series of publications entitled "Practical Impulses" the German Corporate Governance Code (DCGK) Government Commission shares its thoughts on the practical implementation of the Code. In its recently published article, it addresses the topic of artificial intelligence (AI) on the supervisory board.

The paper highlights how the supervisory board can effectively integrate AI into its work, both as a supervisory body and as a strategic sparring partner for the management board. To enable this step by step without overwhelming the board, the commission proposes a three-stage approach:

• Stage 1: AI serves as a digital assistant for routine tasks, such as automatic summaries, text recognition, draft minutes, and efficient document organization.
• Stage 2: AI is used for analysis and contextualization, for example by helping with research and cross-referencing, as well as with the structured evaluation of data. It can identify patterns or anomalies, enable comparisons, and support risk assessments. The inclusion of external data via secure interfaces or data imports is also helpful.
• Stage 3: AI is used for strategic sparring and scenarios, for example through simulation-based scenario and vulnerability analyses and logic checks. In the future, AI agents that pursue tasks autonomously will become increasingly important.

In addition to the possible applications, the Commission points out the relevant prerequisites, highlighting five key areas:

First, legal provisions for information gathering (e.g., GDPR, EU AI Act) must be complied with. Second, ethical standards and company-specific guidelines are of crucial importance. Third, these include ensuring the traceability of results and meeting technical requirements such as data protection and confidentiality. Fourth, it is important not only to consider the economic benefits, but also to recognize the limitations and risks of AI and to critically analyze the data generated. Finally, fifth, clear governance structures, which include, for example, defined areas of application and responsibilities, promote the responsible use of AI in committee work.

According to the government commission, the practical recommendations are not binding and are not intended to be or become part of the DCGK. With regard to the use of AI in supervisory boards, the commission urges companies to start as early as possible – "preferably immediately." It emphasizes that what is crucial for supervisory boards is not detailed technical knowledge, but openness to new ways of thinking and new areas of application.

The detailed practical recommendations of the government commission can be found here.