Why it matters now
Boards are giving AI more agenda time, but many still lack the knowledge, the framework or the measures to oversee it well. That leaves CEOs either presenting hype or defending against fear. I have sat on boards, and the useful conversations are the calm ones: what we are trying to achieve, what it is worth, what could go wrong and how we will know.
- 62% of public-company boards now set aside agenda time for AI, up from 28% in 2023. Only 36% have adopted an AI governance framework, and 6% have established AI metrics for management reporting.NACD, 2025 Public Company Board Practices and Oversight Survey ↗
- 66% of board respondents say their boards have limited or no knowledge of AI, and 31% say AI is not on the board agenda.Deloitte, Governance of AI: A Critical Imperative for Today’s Boards, 2025 ↗
Common mistakes
- Board updates built on demos and hype instead of measures.
- No agreed AI metrics, so progress cannot be judged.
- Treating AI only as a risk, or only as an opportunity.
- Leaving it unclear whether the full board or a committee oversees AI.
What to do instead
- Agree the story. Give the board one consistent account: the strategy, the value expected, the main risks and what it means for people.
- Report a few measures. Choose a small set of AI measures, such as value delivered, adoption, incidents and spend, and report them every time.
- Clarify oversight. Decide with the chair whether AI oversight sits with the full board or a committee, and write it down.
- Educate directors. Offer hands-on sessions for directors on your own business cases. Knowledge improves the quality of the questions.
- Balance risk and opportunity. Bring both to every discussion, so the board does not drift into only one.
Your first step this week
Draft a one-page AI update for your next board meeting with four headings: strategy, value, risk and people. Note which measures you cannot yet report.
Related guides
- What is my own role as CEO, and is my leadership team AI-literate enough?
- How do we govern AI risk and use AI responsibly?
- Why aren’t we seeing a return on AI, and how do we measure it?
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