The job of a board is to protect shareholders’ interests. But because AI is so fundamentally disruptive (strategically, operationally, and competitively), the board has an obligation to its shareholders to drive and oversee the change. To keep your company as relevant tomorrow as it is today, the time is now for your entire board to become AI-conversant.
As professors, authors, and advisors, we’re fortunate enough to observe board meetings at some of the world’s leading companies. Recently, the board of directors for a Fortune 200 financial services company was discussing artificial intelligence’s (AI) role in their company’s future. They discussed generative AI and its massive potential as a content creator and code generator. They discussed AI-related risk, such as an employee uploading confidential material into generative AI. They expressed concern that AI is moving too fast to keep up. The discussion concluded with an agreement on AI being critical to the go-forward strategy and to have an “AI status update” at every future board meeting.