Most corporate boards aren’t ready for the AI revolution—but the AI revolution isn’t waiting. Despite all the attention on machine learning and intelligent automation, many directors still admit they don’t understand AI well enough to oversee it. Some aren’t even putting it on their agendas.
The companies that win in the next five years won’t be the ones chasing shiny tech—they’ll be the ones whose boards know how to govern it.
Corporate boards are at a crossroads. AI presents massive opportunities for growth and efficiency, but also introduces significant risks—ethical, operational, and legal. Governing this powerful technology is no longer a technical task. It’s a core leadership responsibility.
The Boardroom Gap
Deloitte’s 2025 Governance of AI report paints a clear picture: two-thirds of boards still have limited or no experience with AI. And nearly one-third don’t even have it on their agenda. That’s a problem.
Ignoring AI isn’t just a missed innovation opportunity. It’s a governance blind spot. Directors are there to protect long-term value. That means asking: How is AI changing our industry? Are we ready? What are we not seeing?
Many companies are making progress. Some are embedding AI in specific functions, from marketing to supply chain. But only 5% of boards say they feel “very ready” to deploy AI across their organization. Meanwhile, nearly one-third still say they’re not ready at all.
That level of unpreparedness at the board level can lead to fragmented adoption, unmanaged risks, and poor strategic alignment. In short: it can cost a company more than it saves.
Where the Opportunity Lies
When governed well, AI can do more than streamline operations. It can reshape markets.
Pfizer used AI to help accelerate its COVID-19 vaccine trial process. Unilever applies AI in hiring, sustainability reporting, and marketing optimization. Both firms didn’t just experiment with AI—they integrated it into strategy, with oversight from the top.
Boards that prioritize AI oversight can help their companies:
· Use data more strategically
· Make faster, more accurate decisions
The key isn’t simply adopting AI—it’s adopting it wisely, with board-level alignment on priorities, risks, and outcomes.
The Cost of Inaction
Only 25% of board members say they’re satisfied with their company’s pace of AI adoption. That’s not surprising, but it is alarming.
Even boards that are eager to move often lack structure. Just under half of boards offer any formal education in AI. Less than 15% have added directors with AI or emerging tech expertise. Meanwhile, 59% of board members are educating themselves independently.
This well-meaning effort doesn’t replace coordinated governance. A patchwork of individual understanding can’t support a unified AI strategy. Boards need shared fluency—and a clear oversight framework.
What Good AI Governance Looks Like
You don’t need a PhD in machine learning to oversee AI. But you do need to know what to look for—and what to ask.
Here’s what effective board-level AI oversight should include:
1. A clear AI strategy that connects to the company’s long-term goals
2. Guardrails around ethics, bias, and regulatory compliance
3. Oversight of AI investments, performance, and accountability
AI governance isn’t about deep dives into models and data pipelines. It’s about understanding the business impact, risk trade-offs, and where management may be overlooking something critical.
Start With the Right Questions
Boards don’t need all the answers—they need to ask better questions. Deloitte’s report offers a great starting point. Here are a few directors should consider during their next strategic discussion:
· How is AI currently being used across the company?
· What risks come with adopting—or not adopting—AI in our sector?
· Who’s responsible for AI strategy, and how are they being held accountable?
· Are our metrics tracking both performance and unintended consequences?
AI governance isn’t something to bolt on later. It needs to be embedded into strategy conversations now—before tools are deployed and headlines are written.
Trust Isn’t Automatic
The more companies rely on AI, the more they’ll be judged by how they use it. Stakeholders expect decisions—especially automated ones—to be fair, explainable, and safe.
Trust can’t be delegated. If a company’s AI makes biased decisions, breaks a privacy rule, or causes harm, the board will be asked: Where were you?
That’s why more boards are pushing for frameworks like Deloitte’s “Trustworthy AI,” which emphasizes transparency, fairness, and human oversight. It’s not just about doing what’s legal—it’s about doing what’s right.
And as regulation ramps up in the EU, U.S., and other markets, the cost of noncompliance is rising. Boards that get ahead of this will protect not only their brand, but their bottom line.
Making AI a Board-Level Priority
If AI is still seen as a tech topic, it’s time to change that. Directors should treat AI like any major strategic shift—digital transformation, climate risk, or cybersecurity.
Here are a few steps boards can take:
· Make AI a recurring agenda item at board meetings
· Set clear oversight roles—whether at the full board or committee level
· Encourage management to present AI strategies and risk assessments
· Invite external experts to brief the board quarterly
· Align AI strategy with company values and talent development
Leadership starts at the top. If the board makes AI governance a priority, the rest of the organization will follow.
The Culture Shift Boards Need
AI governance isn’t a one-time effort. It’s a shift in how the board operates.
That includes building a learning mindset. Training should be ongoing. So should engagement with outside perspectives. Boards that seek diverse inputs—technologists, ethicists, regulators—will make more informed decisions.
It also means rethinking board composition. Every board doesn’t need a data scientist, but at least one director with real-world tech experience can help translate complex issues into business terms.
And it means integrating AI into broader governance questions. If AI is influencing decisions about customers, workers, or supply chains, it should factor into how the board thinks about culture, compliance, and long-term value.
Final Thought: Don’t Wait for a Crisis
Most major governance failures—from cybersecurity breaches to financial fraud—share one thing in common: the board didn’t see it coming.
AI could be the next one. Or it could be a breakthrough that drives your company’s next phase of growth.
Which side you land on depends on what your board does now.
AI isn’t optional anymore. Oversight isn’t optional either. Boards that wait to understand AI may find themselves watching from the sidelines as their competitors—and regulators—move ahead.
Summary:
Boards that fail to prioritize AI governance risk falling behind or misstepping entirely. But those that take proactive steps—educating themselves, engaging across the C-suite, and embedding AI oversight into strategy—can help their companies thrive in a changing business landscape.