Despite the rapid rollout of AI to assist with the day-to-day running of companies globally, senior leaders are reluctant to utilise this technology to enhance their own efficiency and performance. Recent research revealed that 45% of boards do not include AI on their agendas, outlining the extent to which AI is being neglected and the output gains that could be achieved by exploring the potential of these innovations.
According to Ciaran Bollard, CEO of the Corporate Governance Institute, boards that ignore AI may struggle to meet the ever-evolving demands of watertight governance.
“There are two undeniable truths about AI in business: the first is that it will redefine how we work, and the second is that it’s here to stay,” said Bollard. “This should serve as both an opportunity and a warning for directors. Managed correctly, there is a vast potential at their fingertips, able to assist them in this new, stricter, higher-stakes landscape of modern governance. But the fact remains that so many boards worldwide just haven’t given it enough thought yet.”
Bollard suggests Board agendas are currently packed with essential issues from inflation to tariffs to geopolitics to ESG and new compliance headaches: “Many directors see AI as an aside to all that,” he says, “something they’ll get to when they have time. They don’t realise that AI could well be the missing link to address all the other challenges.
“People often get worried that AI will eventually replace humans in key roles. The smart response is usually, ‘AI won’t take your job, but someone who can use it might.’ This works along similar lines for governance. Boards that can use AI will likely excel at modern governance over boards that can’t. Companies could thrive or fail on this issue.”
Bollard concluded: “AI governance sometimes means establishing rules for use and sticking to them. But it also means embracing the concept as a whole and integrating it into boardroom activity. Companies that do this right, automating what can be automated while continuing to accept overall responsibility, may find the long-awaited answer to boardroom compliance headaches and endless streams of data.”
