Dive Brief:
- Boardrooms haven't caught up with enterprise efforts to infuse AI into every corporate process, according to PwC data published Wednesday. The firm surveyed more than 600 public company directors for the report.
- Nearly 2 in 5 directors believe their boards have not received enough education on AI despite widespread adoption initiatives. Just over one-third of directors said their boards have incorporated AI and generative AI into oversight roles.
- “Boards are not alone, the rise of generative and agentic AI means both management and boards are learning about new capabilities and risks in real time,” said Ray Garcia, leader of PwC’s Governance Insights Center, in an email. “Directors aren’t expected to be technologists, but they are expected to understand the technology's potential, limitations and risks so they can ask informed, strategic questions and challenge management when needed.”
Dive Insight:
The C-suite was thrust into fast-paced change as generative AI landed in the enterprise and expanded into software offerings. Adoption became a top priority as businesses eyed productivity gains.
But AI is top of mind for board members too. Nearly two-thirds of directors identified AI as the leading priority for their businesses, according to a Diligent Institute report published last month. Almost one-third of directors said they sought AI education in order to get up to speed.
“As companies continue to adopt AI into their business strategy and operations, boards want to better understand its impact and engage with management on the right questions,” said Garcia.
According to Garcia, some of the key questions board members ask include:
- How will AI affect business strategy and customer interactions?
- What risks does AI introduce and how can the company incorporate responsible AI?
- How will AI reshape the workforce and talent strategy?
Despite ongoing deployment plans, more than 2 in 5 directors say keeping up with the pace of change is a top concern related to AI, according to the PwC report.
CIOs can leverage their own AI savviness to help expand awareness among top executives. One example comes from Sathish Muthukrishnan, chief information, data and digital officer at Ally Financial, who planned a day of AI training for the company's executive committee in order to increase visibility into adoption efforts.
“CIOs have an important role to play in helping boards close the knowledge gap on AI,” Garcia said. “They can organize briefings with the board offering insights on LLMs, agents, responsible use, frameworks and other topics. They can also contribute through cross-functional councils that assess AI opportunities and risks across the business.”
Board members should also reach out to other C-suite leaders — including those in legal or risk functions — and seek external upskilling opportunities to build up AI expertise, Garcia said.
