Boards adopt AI oversight strategies

TL;DR: IMD governance experts say boards are moving from exploratory AI pilots to formal oversight structures that tackle risk, decision quality, and efficiency. Directors are expanding their skills mix and information flows to challenge management assumptions responsibly.

IMD governance experts Didier Cossin and Yukie Saito have argued that board directors must treat artificial intelligence as a core governance issue, not a passing technology trend. Their commentary shows boards institutionalising AI oversight to strengthen risk management, sharpen decision making, and unlock efficiency gains ahead of the 2025 reporting season.

Context and Background

Cossin and Saito describe boardrooms establishing dedicated AI and data committees, adding directors with digital transformation experience, and mandating management briefings using explainable AI dashboards. They argue these mechanisms help directors interrogate training data quality, algorithmic bias, and cybersecurity controls before approving new deployments.

The authors note that boards that embed AI in scenario modelling can respond faster to supply chain disruptions and macroeconomic shifts. Generative AI is already synthesising board packs within minutes, freeing secretariats to focus on insight whilst predictive systems flag anomalous transactions for audit chairs.

This emphasis aligns with the UK Financial Reporting Council’s push for stronger assurance over digital systems following the 2024 Corporate Governance Code update.

Looking Forward

The commentary urges boards to map AI adoption to their broader organisational strategy, including investment timelines, workforce transitions, and ethical safeguards. Directors should demand staged milestones that track value creation and risk mitigation.

For UK organisations, the coming year will test how governance frameworks adapt to the EU AI Act’s extraterritorial provisions and the UK’s proposed AI Safety Institute guidance. Boards that cultivate transparent data lineage and scenario rehearsals will be better prepared to demonstrate accountability to regulators, investors, and employees.

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