This recent Fortune article, “Is Your Board Ready for AI?”, raises a critical question for businesses navigating the rapidly evolving landscape of artificial intelligence. There’s an urgent need for robust AI governance at the highest levels of leadership, and a growing gap between Boards that are using confidently AI tools and those that don’t understand how they should be using AI and generative AI. Is your Board AI ready?
The Fortune article points out that Board members are increasingly incorporating generative AI into their workflows. While this can lead to enhanced efficiency and decision-making, it also presents significant risks if not managed effectively.
Whilst Boards are used to looking at risks in areas like Data Privacy and Security, AI brings new risks. For example, a Board member faced with a 400-page Board pack could use generative AI to summarise the papers and suggest key areas to challenge in the meeting. But should they do this?
Firstly, they need to understand whether the large language model (LLM) they are using exposes sensitive company information to the outside world. Are the prompts and documents they share with the LLM private to the user or shared with the LLM? They need training on how to check and understand the difference, or clear guidance on which tools are safe for them to use.
Secondly, too many people believe that LLMs are surfacing “truth” in their outputs. They haven’t realised that they are giant prediction machines, so their output is a prediction of what is likely to be a good response to the prompt, but that doesn’t mean it is true. And even if the output is sufficiently accurate, it may miss nuances that are important. Are your Board colleagues ready to make these distinctions?
Surveys show generative AI will be in the top 10 priorities for Directors in 2025, ranked higher than cybersecurity and workforce planning. So how can we help Board members address these concerns and ensure responsible AI adoption?
We urge Boards to invest in updating their knowledge of the rapidly changing tech world. The team at NEDonBoard provide Board Digital Leadership training that covers everything from technology trends to establishing digital culture and mindset. That’s definitely worth a look (full disclosure: Sue Turner is one of the tutors on that course).
Deloitte research recently found only 23% of Board members are satisfied with how much time their Board is spending on AI issues. Challenge your Board to make a commitment to Responsible AI and in so doing you’ll push your leadership to allocate more time to talking about AI issues. Get the discussion started about which AI-powered opportunities to pursue, how you are adapting risk management and monitoring, and your approach to stakeholder engagement.
You’ll find that embracing a clear AI Governance Framework will help your Board move beyond mere AI curiosity to a position of informed leadership. Make sure your organisation is AI-ready, not just in terms of technology adoption but also in ethical considerations, risk management, and long-term value creation. As the Fortune article states, boards must push for an “outside-in approach”, asking where AI can be used to disrupt and improve their own businesses. Is your board AI ready for the transformation?
And of course, get in touch if you’d like us to deliver a stimulating Board development session to get you to the next stage!
