Steps boards can take now to bolster AI oversight

The data shows that boards are eager to spend more time on AI and gen AI, enhance their knowledge and experience, and accelerate the pace of adoption in their organizations. But how can boards best navigate these opportunities and challenges? The following are a few immediate actions boards can consider taking to bolster AI governance.

1) Put AI on the board agenda—and make it strategic. Boards that aren’t yet discussing AI should consider adding it as an agenda item. Areas to consider include:

a. Cadence of discussions: How often should AI be on the board agenda?

b. Special sessions: Would the board benefit from a special session on AI or a board strategy retreat?

c. Strategy and scenario planning: Has the board scheduled an initial discussion with management to hear their analysis on risks and opportunities related to AI and the AI ambition of the organization?

d. Management oversight: How will the board assess, support, and, if necessary, challenge management’s point of view?

e. Risk appetite: Has the board had a discussion about risk appetite, both for the use of AI and, more broadly, for the organization, given the more uncertain environment that AI creates?

f. Regulatory scanning: How will the organization review AI’s regulatory and compliance landscapes across the geographies and jurisdictions in which it operates?

g. Measurement: When and how will the organization review the measurement of the progress and benefits of using AI in a way that ensures robust oversight of investments without stifling innovation?

2) Define the governance structure. To effectively exercise oversight, boards will likely also need to delineate and assign AI-related responsibilities. Considerations include:

a. Ownership of AI on the board: Which matters should be discussed as a full board? Can some be delegated to a committee—and if so, which committee?

b. Receiving robust and beneficial information from management: Is the board getting sufficient and appropriate information from management about AI-related matters, including risk management and internal controls, to exercise oversight?

c. Having access to more leaders: Given the wide range of impacts across all areas of the business, is the board connecting to other key members of the C-suite and business leaders beyond the CEO or CTO?

d. Striking the right balance: Is board involvement too high-level to effectively govern the use of AI? Will deeper board education and engagement result in too much oversight?

3) Evaluate and enhance AI literacy. To effectively oversee the opportunities and threats AI can introduce, boards should ensure they and their management teams are AI literate. They may consider:

a. Finding opportunities for education to fill gaps in knowledge: What training and educational opportunities are available to help the board upskill on AI and emerging technologies? Would the board benefit from bringing in internal or external experts to inform discussions?

b. Reevaluating the skills matrix: Does board composition need to be adjusted to recruit board members with more experience with AI and emerging technologies? What about in the C-suite?

c. Revamping succession plans to be more tech-forward: Have succession plans for the board and management been updated to focus on leaders who have experience with emerging technologies, including AI? Have learning opportunities been developed to help the pipeline of future leaders expand their skills and expertise in these technologies?

d. Staying in the flow of action: How can the board ensure it remains actively engaged in the evolving landscape of AI, guarding against complacency and outdated perspectives and remaining agile and responsive to AI’s evolving capabilities?

Link to the full report can be found here.