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    Artificial Intelligence

    AI at board level: The three questions keeping board members up at night

    by Didier Cossin, Yukie Saito Published October 20, 2025 in Artificial Intelligence • 6 min read

    Here are the answers board members need to lead effectively in an era of AI.

    In a world plagued by permacrisis, geopolitical turbulence, political instability, and war, the role of a board director has evolved. Once mandated with pure strategic oversight, board members are now required to shape strategy, steer the organization, and steward long-term sustainable growth.

    At the same time, artificial intelligence (AI) has rapidly transformed the business environment, helping board directors to strengthen their risk management and foresight and support high-quality decision-making.

    But while its powers continue to grow, hesitancy and misunderstanding of AI continue to stagnate boardroom efficiency. In this article, we discuss the three biggest AI-related questions keeping directors up at night and offer the answers you need to lead effectively in an era of AI.

    Machine learning models are beginning to play a role in analyzing board dynamics and surfacing early signs of dysfunction

    How can I leverage AI for real-time board performance evaluation?

    Traditional board evaluations are typically static and retrospective exercises, often limited to annual self-assessment surveys or periodic external reviews. These assessments are valuable, but they offer only a snapshot in time and often overlook the ongoing dynamics within the boardroom. Directors across the world are questioning how to adopt AI to transform this evaluation process by enabling continuous, real-time monitoring of board performance. Instead of waiting months for structured feedback, chairs and directors need access to ongoing insights into how the board is functioning, both as a group and at the individual level.

    Machine learning models are beginning to play a role in analyzing board dynamics and surfacing early signs of dysfunction. While still developing, these models go beyond simple sentiment analysis to assess participation, communication patterns, agenda alignment, and how meeting time is distributed. Such tools can reveal imbalances in engagement, highlight directors who consistently dominate or remain silent, and identify when discussions drift from strategic priorities. They can also detect more subtle indicators, such as recurring off-topic conversations or declining interaction quality, well before they escalate into performance concerns.

    “According to the 2024 Deloitte Global Boardroom Program, just 2% of boards rate themselves as highly knowledgeable about AI, and close to 80% admit to having limited or no experience. ”

    How can I strengthen board AI literacy and ethical oversight?

    To fully leverage AI’s benefits while mitigating its risks, boards must actively enhance AI literacy and ethical oversight as part of their governance mandate. An AI-literate board is one where directors possess a baseline understanding of AI technologies, their capabilities and limitations, and their potential impact on the business. According to the 2024 Deloitte Global Boardroom Program, just 2% of boards rate themselves as highly knowledgeable about AI, and close to 80% admit to having limited or no experience.   

    To fill this gap, many boards are actively working to enhance their AI fluency. The same dataset revealed that a growing number are introducing structured AI education programs (40%), regularly engaging external AI experts to brief the board (37%), and, in some cases, appointing AI specialists as directors (8%). 

    In parallel, boards must also take an active role in the ethical governance of AI. This includes ensuring the company establishes and upholds clear AI principles, such as transparency, accountability, and privacy, and oversees the development of governance frameworks, such as dedicated board committees or review protocols.

    Humans define where and how AI delivers value

    How can I retain human leadership?

    In embedding AI in organizational decision-making, boards must guide its adoption with clear human leadership and accountability. AI offers powerful tools for generating insights, such as scenario analysis or predictive analytics, but it cannot replace the contextual judgment, ethical reasoning, and strategic foresight that human decision-makers bring.

    At the same time, AI should not be seen as a creator of competitive advantage. Humans define where and how it delivers value.  The real advantage lies not in AI itself, but in how it is used to amplify an organization’s existing strengths. Boards must guide management in aligning AI initiatives with core capabilities, ensuring that technology deepens value rather than distracting from it.

    Most importantly, embedding human values into AI is a board-level imperative. As AI systems increasingly impact people’s lives, boards are expected to oversee not only performance but also principles, ensuring AI reflects commitments to values such as fairness, privacy, and safety. This demands more than compliance; it requires a proactive infusion of ethics into product design, data practices, and corporate culture.  Boards must take ownership of this responsibility, ensuring that human values are fully integrated into their AI strategy.

    Enhance AI literacy through expert briefings and training sessions.

    Tips for board members  

    Synthesizing these insights, the following recommendations are offered for boards seeking to lead effectively in the AI era.

    • Put AI on the board agenda regularly: Incorporate AI discussions into regular board meetings to ensure directors remain informed about ongoing developments and their strategic implications. This approach enables boards to proactively anticipate and assess potential risks, while also identifying emerging opportunities.
    • Invest in board education and expertise: Enhance AI literacy through expert briefings and training sessions. Where appropriate, consider appointing new board members or external advisors with AI expertise to complement the board’s existing capabilities. Digital acumen is an important consideration in board succession planning.
    • Establish an AI governance framework: Establish a governance framework for AI that the board regularly oversees to ensure compliance. This framework should include clearly defined ethical AI principles, such as fairness and transparency, the designation of a relevant committee or responsible officer, and formal processes for reviewing high-risk AI applications.
    • Combine human and AI strengths: Recognize and harness the complementary strengths of AI and human intelligence. The effective use of AI is not about replacement, but about using AI to augment human creativity and other capabilities. Boards should ensure that AI initiatives are intentionally designed to enhance, rather than diminish, human potential.
    • Monitor AI-related risks continuously: Ensure the board receives timely and relevant information on AI-related risks, including regulatory developments, cybersecurity threats, and algorithmic errors. AI risk oversight should be integrated into the organization’s existing risk management systems.
    • Plan for workforce and organizational impact: Address AI’s impact on people and organizational structure. This includes developing strategies for employee education in roles that will interact with AI and fostering a culture that embraces responsible innovation. Additionally, considering the ethical implications and maintaining transparent communication can help build trust and facilitate the adoption of AI-driven changes.

    An informed and proactive board plays a critical role in ensuring that AI initiatives are advanced with both ambition and responsibility, balancing innovation and oversight.

    Authors

    Didier Cossin

    Didier Cossin

    Founder and director of the IMD Global Board Center, the originator of the Four Pillars of Board Effectiveness methodology and an advocate of Stewardship.

    Didier Cossin is the Founder and Director of the IMD Global Board Center, the originator of the Four Pillars of Board Effectiveness methodology, and an advocate of stewardship. He is the author and co-author of books such as Inspiring Stewardship, as well as book chapters and articles in the fields of governance, investments, risks, and stewardship, several of which have obtained citations of excellence or other awards. He is the Director of the High Performance Boards program, the Mastering Board Governance course, The Role of the Chair program, and co-Director of the Stakeholder Management for Boards program.

    Yukie Saito Senior Research Writer

    Yukie Saito

    Senior Research Writer

    Yukie Saito is a Senior Research Writer at the Global Board Center at IMD. Her research interests primarily focus on corporate governance, stewardship, and responsible investment, with her publications centered around these topics. Her work also includes examining governance issues, effective board practices, and the impact of governance on social and environmental performance. She holds a D.Phil. from the University of Oxford, a Master of Public Affairs (MPA) from Sciences Po, Paris and a B.A. in Business and Commerce from Keio University. She is an associate researcher at the Fondation France-Japon de l’École des Hautes Études en Sciences Sociales (EHESS).

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