Artificial Intelligence isn’t just another tech trend – it’s fundamentally reshaping how businesses create and capture value. With AI spending projected to reach a staggering $749 billion by 2028, boards of directors can’t afford to treat this as just another IT initiative.

Why should boards care? Because AI touches every aspect of governance under their purview. It’s opening new strategic frontiers, allowing organizations to uncover hidden market opportunities and revolutionize operations. But it’s also introducing novel risks, from sophisticated cyber threats to potential bias in decision-making. The technology is reshaping workforce dynamics, raising critical ethical questions, and creating new compliance challenges in an evolving regulatory landscape.

Given these sweeping implications, boards must take an active role in guiding their organizations’ AI journey. This means staying ahead of AI developments, shaping strategic direction, and establishing robust governance frameworks. Most importantly, boards need to ensure accountability by monitoring investments and measuring tangible outcomes.

To fulfill this responsibility effectively, boards should engage regularly with both the CEO and CTO. 

When talking to the CEO, focus on strategic alignment: 

• How does our AI strategy align with our overall business objectives?
• What governance frameworks do we have for AI oversight?
• What is our AI investment strategy for the next 2-3 years?
• How are we managing AI’s impact on our workforce?

The conversation with the CTO should dive deeper into implementation and security: 

• What AI technologies are we currently using and why?
• How do we ensure our AI models are unbiased and explainable?
• What safeguards are in place against Shadow AI?
• How do we measure the success of our AI initiatives?

In today’s rapidly evolving business landscape, boards that fail to actively engage with AI risk leaving their organizations behind. The question isn’t whether AI will transform your business – it’s whether your board is ready to guide that transformation responsibly and effectively.