This is the first of three articles to be posted on consecutive Fridays through July. Read on to learn about PwC's research(*) on board work and director contributions, and how boards intent on governing with impact might respond to identified gaps.
Much has been made about artificial intelligence in recent times; familiarity growing to such an extent that ‘AI’ has become ubiquitous, a word in and of itself. Expectations are sky high, that is clear. But what of competency, application, and, crucially, return on investment and beneficial outcomes?
Over the past 12–18 months, almost every speaking invitation I have received, and every request to curate a capability-building workshop or provide advice, has included, in some way, an expectation that I’d comment on AI in the boardroom. Whether expressed as AI governance, AI powered board decisions, the AI director, or some other variant, folk seem to be rushing, headlong to embrace AI.
That this is happening is self-evident: just look at social media feeds and newsletters from directors’ institutions. But board directors are not lemmings: they need to think critically about their work (which is, to provide effective steerage and guidance—govern with impact) and their duty to take the company into the future, not run headlong into whatever might be around the corner.
PwC's research suggests that, while AI is top of mind in most boardrooms and expectations are very high, some major gaps are starting to become apparent. For example:
- Currency gap: Over one third of directors surveyed (38%) say they lack adequate education on AI developments, and nearly half (43%) say their top concern is keeping up with the pace of change.
- Impact gap: Only 12 per cent of CEOs say they have successfully reduced costs and increased revenues as a result of AI deployments; over half (55%) have seen no progress on cost reduction or revenue increase (including 13 per cent who have seen costs increase with no revenue impact).
These gaps, and others, have the potential become chasms, unless directors come to terms with the changing environment and boards respond well. Fortunately, directors (individually and collectively) are not devoid of options:
- Continuing education: If directors are to maintain relevance, they need to detect and critically assess emerging trends, cultural shifts and market preferences. For this, directors need to commit time to read widely, attend briefings from a range of sources, and ponder options. Five to ten hours per week is not unreasonable.
- Purpose and strategy: Many corporate strategies are strategic in name alone; they are more accurately either fluffy vision statements without substance, or detailed plans without a clear sense of direction. In high change environments (especially), directors need to insist on strategic reviews twice or three times per year, to check the continued relevance of previously agreed strategic priorities and projects, and make adjustments if needed. This is not planning, nor is it management. It is reviewing overall direction and pathway, given what lies ahead. Clarity on purpose and strategy will enable the executive to empower teams to explore options to expedite approved strategy, and reject projects that have no direct linkage to the advancement of strategic goals.
- Frequency of meetings: In high-change environments, a lot can change between board meetings. Directors should consider meeting more frequently during periods of high change, or to oversee a strategically important project. But caution is needed, to avoid real-time dashboards and reporting feeds; the board's job is to govern not manage!
- Capability and expertise: Boards need to ensure they have the right sort of expertise available, to understand risks and opportunities, and make informed decisions. Annual governance assessments, conducted by a credible third party, is recommended. The findings will help identify capability and expertise gaps, especially in relation to critical thinking, deep sector knowledge, technical expertise, and behaviours necessary to provide effective steerage and guidance in a turbulent environment.
From all I have read to date (which is a lot), AI tools promise material benefits to companies wanting to gain operating efficiencies and improve customer service. However, emerging evidence suggests AI is not a silver bullet. If directors are to add value, they need to be both informed and vigilant: A useful starting point is to check if (and if so how) any proposal might expedite progress towards the company's purpose and strategy.
(*) PwC research: 2025 Corporate Directors' Survey and 2026 Global CEO Survey.
