As generative AI tools have become widely accessible many corporate directors are paying close attention to how this technology is shaping governance and decision making. Boards are following developments closely assessing potential risks monitoring regulatory changes and exploring how generative AI can support long term business strategy.
At the same time board members are beginning to use generative AI directly in their own work. This shift raises important governance questions. Do directors have clear guidance on acceptable use of AI for board responsibilities. Are those guidelines being followed consistently. And how can organizations ensure that AI adoption at the board level remains secure compliant and aligned with enterprise risk management goals.
Recent survey based research among corporate directors highlights how quickly this shift is happening and where the biggest gaps remain.
How boards are using generative AI today
A strong majority of directors now view AI advancement as a top business priority. In fact nearly two thirds of surveyed board members ranked AI adoption above other strategic initiatives such as acquisitions or supply chain changes. This signals that generative AI is no longer seen as an experimental tool but as a core driver of future performance.
Director behavior is also evolving. Many have moved beyond cautious trials to regular use of AI in board related activities. Approximately two thirds reported using some form of AI to support their board work. This represents a substantial increase compared to prior years when fewer organizations had adopted AI at all.
Generative AI for board meeting preparation
When asked how they use AI most directors pointed to meeting preparation. About half rely on AI tools to review materials ahead of meetings. Others use it to summarize complex information or compare performance against peers. These applications help directors manage growing volumes of information and focus their attention on the issues that matter most.
However advanced strategic uses remain limited. Only a small share of directors currently use generative AI for activities such as forecasting risk scenarios or supporting real time strategic analysis. This suggests that board level AI use is still focused on efficiency rather than deeper transformation.
Governance risks boards cannot ignore
Despite growing adoption there is a clear governance gap. Nearly half of directors who use AI rely on free consumer oriented tools. At the same time only a minority report having formal policies that address AI governance ethics or risk management. Many boards have yet to formally discuss AI use at all.
This combination creates meaningful risk. Board materials often contain sensitive confidential and legally protected information. Using unsecured or unapproved AI platforms can expose organizations to data leakage loss of privilege and regulatory scrutiny. Without clear rules directors may unintentionally share information with third parties or create records that increase legal exposure.
Practical steps for responsible AI adoption
Boards can take straightforward steps to reduce risk while still benefiting from generative AI. One starting point is to extend existing technology and data use policies to explicitly cover board level AI use. These guidelines should define which AI tools are approved and for what purposes they may be used.
Boards should also discuss how AI activity could be discovered in legal or regulatory proceedings and how device usage affects security whether work is done on company systems or personal devices. Platform selection data protection controls and regulatory compliance should all be part of the conversation. Ongoing education is equally important so directors understand evolving AI risks and responsible use practices.
Generative AI is advancing rapidly and board use will continue to expand. The key is not to slow adoption but to guide it thoughtfully. By putting clear governance structures in place boards can ensure that generative AI strengthens decision making while protecting the organization from avoidable risk.
