Kris Pederson is Center for Board Matters Leader, Barton Edgerton is Center for Board Matters Corporate Governance Research Leader, and Cigdem Oktem is Center for Board Matters Leader at EY Americas. This post is based on a EY memorandum by Ms. Pederson, Mr. Barton, Ms. Oktem, Bill Hobbs, Michael Kanazawa, and Jeffrey Saviano.
Nearly every CEO (95%) in a recent EY survey said that they plan to maintain or accelerate transformation initiatives, including artificial intelligence (AI) and other technologies, in 2024. Meanwhile, institutional investors see responsible AI as an emerging engagement priority, and it’s no surprise that directors rank innovation and evolving technologies as a top priority in 2024.
To better understand how boards are addressing AI challenges and opportunities, we spoke with directors representing more than 50 companies. During these formal and informal discussions, we asked how they were navigating the near‑frenetic pace of developments in AI and cutting through the noise to help their companies strategically use AI and better understand the related risks. What we learned is that many boards are already taking important steps. Following are four ways that boards can provide effective oversight and governance as companies embrace AI to create operating efficiencies and support growth to gain strategic advantage.