The rise of artificial intelligence (AI) in the business world makes clear and active governance at the board level essential.

However, boards’ knowledge and preparedness to effectively oversee AI adoption remain largely insufficient, as reported by a recent Deloitte study. This survey reveals a glaring lack of skills, highlighting the need for companies to strengthen their expertise and strategic approach to AI.

Limited AI Expertise on Boards of Directors

The Deloitte study indicates that only 2% of board members believe they have the necessary skills to effectively oversee the adoption of generative AI. This statistic demonstrates that the majority of executives currently find themselves in a position of weakness when facing AI technologies.

The report highlights that three-quarters of respondents (79%) acknowledge that their boards of directors have limited, minimal, or even no knowledge of AI. This lack of expertise significantly restricts their ability to make informed decisions and assess the risks and opportunities related to AI.

AI Still Absent from the Agenda for Most Companies

The Deloitte Global survey reveals that 45% of the 468 board members and senior executives surveyed admit that artificial intelligence is not on their agenda.

This absence underscores a worrying disconnect between the rapid evolution of technologies and companies’ strategic engagement. Treating AI as a priority therefore becomes urgent for boards: to avoid being placed in a vulnerable position compared to more proactive competitors.

The adoption of AI in internal processes is still in its infancy. According to the Deloitte study, only 3% of companies declare themselves fully ready to integrate AI into their recruitment processes. This reluctance to embrace AI in sensitive areas can be explained by fear of algorithmic bias or lack of confidence in the technology. Yet AI has the potential to make selection methods more efficient and objective. For AI to reach its full potential in companies, boards of directors must not only strengthen their understanding of this technology, but also adopt clear policies and ethical practices to ensure its responsible use.

An Urgent Need for Training and Awareness

With 79% of boards lacking AI experience, investing in training and awareness programs to bridge these gaps becomes crucial. They must familiarize themselves with different types of AI, understand the implications of generative AI, and learn to assess the ethical and regulatory risks associated with these technologies.

A Culture of Transparency and Accountability

Integrating AI into company processes cannot be done without a rigorous ethical framework. Deloitte emphasizes the need to promote a culture of transparency and accountability around AI, which requires proactive engagement from boards of directors. This culture includes establishing monitoring and audit protocols for AI systems to ensure their traceability. They must ensure that decisions made by AI are explained clearly and understandably, particularly in critical areas such as finance, healthcare, or human resources. This strengthens team confidence and reduces the risk of ethical drift.

A Balance Between Innovation and Caution

The Deloitte Global study also examines the ideal pace of AI adoption. Integrating it too quickly, without thorough understanding, can lead to costly errors. On the other hand, adoption that is too slow can hinder innovation and disadvantage the company against more agile competitors. To find this balance, boards of directors must work closely with the company’s technology experts. They must assess AI’s impacts on organizational culture and establish governance that allows for progressive and controlled adoption.

The Importance of Collaboration with External Stakeholders

Integrating AI into companies cannot be done in isolation. Boards of directors must collaborate with external stakeholders, including regulators, consumer organizations, and ethics experts, to build AI governance that respects societal standards. This cooperation can help boards anticipate upcoming regulations and adapt their practices proactively to ensure ongoing compliance. By working hand in hand with experts, companies can not only protect their reputation, but also strengthen the legitimacy of and trust in AI.

AI adoption in business offers considerable opportunities, but it also imposes increased responsibility on boards of directors. The figures from the Deloitte study clearly show that boards are still largely underprepared to effectively oversee this technology. Improving training, strengthening governance protocols, and promoting a culture of transparency and ethics is therefore a necessity.