Using AI in the boardroom- new opportunities and challenges

November 2025

The board has long relied on management for nearly all information to perform its oversight role, but that information may at times lack certain context or alternative perspectives which can limit the board’s decision-making. This current arrangement creates an agency problem as the board depends on its information from the very management team it is tasked with overseeing.

How AI changes the dynamic

AI can transform this dynamic by giving directors faster and easier independent data and insights. It can enable boards to summarize board packages, benchmark public disclosures, explore market trends and pressure-test strategy. The capabilities of AI can help directors ask better questions and engage in deeper discussions with management.

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Getting started

There are potential opportunities for boards to leverage AI, including: acting as a strategic thought partner, leveraging external research, assessing board performance, and enabling predictive scenario planning. However, as AI enters the boardroom, directors must remain thoughtful about its risks—from board overreach, AI hallucinations, data security to legal liability. A thoughtful approach is needed for the use of AI in the boardroom that balances innovation while addressing risks.

A proactive governance approach for board use of AI

To responsibly integrate AI into board processes and workflows, the board should consider adopting a proactive governance framework developed collaboratively with the CEO and management and legal advisors that guides its use and drives alignment with the board’s oversight responsibilities. Here are actions that the board should take:

Put AI use in the boardroom on the agenda
Commit to upskilling
Enable secure AI use
Maintain human oversight
Have a plan to address discrepancies between AI-generated information and management information
Recognize board prompts and AI-generated outputs may be retained
Prepare for investor transparency
Evolve the board’s AI approach over time