At a recent corporate governance meeting, half of board members reported using AI, yet only 10% engaged deeply to aid governance. This highlights both the limitations and potential of AI in enhancing board functions. While many companies, per a McKinsey survey, have integrated AI into workflows and data analysis, the use in governance remains sparse. Boards are increasingly discussing AI policies, with over 62% engaging in full-board conversations about its applications. AI can empower directors by supplementing the information provided by management, ensuring transparency while fostering informed decision-making. However, as older board members may struggle with AI’s complexities, significant training is needed to ensure effective and ethical use. AI is a tool that can enhance strategic discussions, as seen in situations involving rapid tariff changes. Firms must navigate the challenges of integrating technology while maintaining ethical standards to protect confidential information. Embracing AI can bolster fiduciary responsibilities and shareholder value.
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