All boards are different, but there are three critical assets that great boards possess to contribute to their effectiveness. First, they have deep and varied experiences that enhance their business judgment. Second, they take a long-term, enterprisewide approach to evaluating the success of the business. Third, they work closely with management, but they maintain their oversight role and one-step separation from the daily operations of the business so they can provide perspective and ask challenging questions about strategy.

AI can significantly enhance those critical functions of the board by addressing the longstanding issue of information asymmetry between boards and management. At the same time AI capabilities offer opportunities for boards, the technology can raise new risks that boards and management should anticipate and address together.

(more…)