Directors who built careers mastering finance, strategy, and risk management now face a technology that demands entirely new competencies. The question isn't whether AI will transform your industry. It's whether your board will lead that transformation or scramble to catch up.
Here's why so many directors feel lost - and what to do about it:
Lack of AI literacy:
Most directors did not grow up with AI.
They know finance, risk, and strategy - but not neural nets or generative models.
This leaves them blind to both the risks and the rewards.
Unclear regulations:
AI rules are changing fast.
Boards fear making the wrong call and facing fines, lawsuits, or public backlash.
Uncertainty leads to inaction.
No playbook for oversight:
There is no standard for AI governance.
Boards are used to clear frameworks for finance and compliance.
AI is a new frontier with no map.
Tech moves faster than board meetings:
AI breakthroughs happen every week.
Boards meet every quarter.
By the time they act, the world has changed again.
"Less than 13% of directors on boards have AI knowledge and experience, yet nearly half of all boards haven't even put AI on their agenda."
— Lisa Davis, former CIO of Blue Shield of California and Director of Movius
So what can boards do to close the gap?
Build AI fluency: Every director must learn the basics of AI. Not to code, but to understand what's possible, what's risky, and what's hype. Workshops, bootcamps, and expert briefings are now board learning essentials.
Appoint AI-savvy directors: Add at least one director with deep AI experience. This is as vital as having a financial expert on the audit committee. AI is now a core business risk and opportunity.
Create an AI oversight committee: Form a group focused only on AI risks, ethics, and strategy. Meet more often than the full board. Stay ahead of new threats and new laws.
Demand regular AI updates: Ask management for clear, simple reports on AI projects, risks, and results. Make AI a standing agenda item. No more "out of sight, out of mind."
Set clear AI principles: Define what your company will and will not do with AI. Write down your red lines for ethics, privacy, and safety. Share them with your teams and your customers.
Learn from others: Study how leading companies govern AI. Borrow their best ideas. Adapt fast - this is not the time for pride.
The boards that succeed will be those that view AI as both a governance challenge and a governance opportunity. They'll use AI tools to become more effective while governing AI implementation responsibly.
Directors who build AI competency now position themselves and their organizations for sustainable success. Those who delay face an increasingly difficult catch-up game as AI reshapes every industry and business function.
Tip: start simple. As Edna Conway, former chief security officer at Microsoft and current board chair at Attabotics, puts it: "Be not afraid. Try AI. Play with it and see how it works." The pressure to build comprehensive AI governance frameworks can be paralyzing. Instead, begin with basic AI literacy and one clear use case. Test, learn, and build confidence before expanding scope.