Nobody wants to be dumb at AI. But nobody knows everything about it, not even the deepest experts. The field moves too fast. Boards are no exception.

Only 8% of directors rate themselves strong on AI. Put the other way: 92% say they are not. That matches what I hear from hundreds of board members internationally.

Here's the uncomfortable part: these are the people responsible for governing AI.

I've written two papers on what the board should look like in the AI era (links below). Senior directors tell me that once they read them, they can't unsee it. They also tell me their boards feel years away.

The distance is not the problem. Not starting is.

AI-first competitors are coming for the moat. Where they don't force the issue, activists will.

Why now

For fifty years, staying deeply informed cost too much and strategy changed slowly enough. AI flipped both at once. The lines have crossed.

The Engaged Board Is Now Possible AI makes episodic oversight untenable as it makes engagement affordable. Cost of being thickly informed Speed of strategic change 2024-2026 the window The engaged board becomes necessary at the same moment it becomes affordable 2020 2022 2024 2026 2028 2030 time
For fifty years, the two lines pointed the wrong way for the engaged board. AI moved them both at once. The 2024-2026 window is where the engaged board becomes both necessary and affordable.

The path is shorter than boards think. It takes a safe space from the chair and CEO: learn first, then work out what AI means for this company, then set direction.

The board's role is not the brake. It's power steering.

The first step is the first step. Take it.

The papers

Both are on SSRN. They were built with the boardroom, not just about it.

Contributors across both papers

Nora M. Denzel (lead independent director, AMD; Director, Sony), Douglas Chia (former corporate secretary, Johnson & Johnson), Kai Haakon E. Liekefett (co-chair of shareholder activism defense, Sidley Austin), Dorlisa Flur (director, Sally Beauty and Blue Cross NC), Larry Quinlan (director, ServiceNow and UBS Americas; former Global CIO, Deloitte), and Krishnan Srinivasan (Chief Data Officer, Maersk).

The papers draw on the published work of Leo Strine (former Chief Justice of Delaware), Jeffrey Gordon (Columbia, Board 3.0), Indra Nooyi (former PepsiCo chair and CEO), and others.

The 8% figure is from the NACD director survey.