Organizations today face the challenge of using generative AI without falling prey to its drawbacks. Many companies have employed two basic layers of risk management strategies: policies on how to use the technology, and critical thinking about gen AI’s outputs. Companies should also adopt a novel third layer of risk management: team-based judgment. There are three aspects: collective judgment, in which teams engage in discussions to evaluate output and ensure accuracy; domain judgment, in which teams should delegate decision-making authority to those with the highest expertise or those closest to the work; and reflective judgment, in which teams should meet regularly to share and reflect on their experiences and on those of others using AI. When organizations develop team-based judgment at scale, they will be better equipped to adapt to the fast-evolving AI landscape and face unknown future risks.
