Beyond AI Oversight

Artificial intelligence (AI) continues to dominate the headlines driving board conversations and strategic planning. Boards have been encouraged to learn and adapt their thinking and processes to account for AI-driven changes. Now, the time has come to get much more specific about how boards should handle AI's impact on three familiar core board oversight functions:

Management and compensation

AI adoption requires new standards and metrics against which to evaluate and hold accountable executives who are themselves managing through entirely novel business conditions, introducing novel technologies and employing hybrid human/AI teams. Because the context and substance of operating is changing so quickly, traditional indicators of performance—of management and the organization—almost certainly do not fit.

Illustrative questions: How and when will new performance standards emerge? Does your board have a process for setting new expectations and determining or assessing new performance standards? What will that transition look like? Mistakes and missteps are a certainty. How will the board evaluate these events and those overseeing them?

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