How Boards Can Align AI Leadership Expectations

AI is a leadership challenge, not just a technology one. To thrive in this era, boards need to have the right executives in place.

Artificial intelligence has vaulted to the top of boardroom agendas, yet boards are still grappling with how to approach its oversight effectively. While 55 percent of director and executive respondents surveyed last year said that their boards discuss AI, 41 percent said that their boards do so only once or twice per year, according to Deloitte’s. In addition, less than a quarter of respondents were satisfied with the time spent on this critical topic.

“All boards are struggling with the optimal approach to AI usage. Many of us have spent lifetimes without ever having been exposed to AI. … The uncertainty is prevalent in all the [boards] on which I serve,” said John Zillmer, CEO of Aramark and a board member of CSX Corp., Veritiv Corp., and Ecolab.

Many companies urge boards to become more fluent in AI or involved in the strategy surrounding its implementation. While not misguided advice, fluency in a vacuum is not the goal. The real question for directors is how this knowledge can translate into more effective leadership, investment, and risk management.

Put simply, boards do not need to be AI experts; they need to be leadership accelerants. This is a challenge. AI is disrupting the business environment faster than any prior technology, and boards are being asked to move at a speed that runs against their natural governance rhythms.

“You can’t oversee a disruption like AI using the same governance model you use to run a mature business,” said Doug Schrock, managing principal of AI at Crowe and a former board member.

This fundamental tension creates three critical challenges for boards today.

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