Artificial intelligence has the potential to significantly transform boardroom practices — but perhaps in different ways than is commonly recognized. Four areas in particular are poised for impact, including how boards function, how boards process information, how boards and management interact, and how board advisors contribute. At the same time, the adoption of AI will raise important questions about how to maintain the line between board and managerial responsibilities, and how expectations on each side will change. In this Closer Look, we examine these issues.
We ask:
- How will AI change board processes, practices, and dynamics?
- Are current directors equipped to adapt to this change?
- What training, resources, advice, and counsel will be needed to navigate it?
- How will managers react to a governance setting where boards have more access and transparency into internal operations?
- How will directors respond to a setting where technology interfaces can replicate many of their insights?
- Will AI in the boardroom lead to an improvement in governance quality, or will the rate of corporate governance breakdowns remain the same?