Insights
Russell Reynolds Associates: Maximizing Opportunity, Minimizing Risk: The Board’s Role in AI and Sustainability
Artificial intelligence has emerged as a pressing issue for boards that demands new approaches to governance to ensure that companies are seizing opportunities for value creation, while minimizing enterprise risk. AI technologies possess the potential to revolutionize industries, disrupt traditional business models, and profoundly alter long-term strategies for growth.
As boards navigate the complexities of AI adoption, they are confronted with myriad challenges, including ethical considerations, legal implications, data privacy concerns and the need for transparent decision-making processes. However, Russell Reynolds Associates’ latest Global Leadership Monitor shows that boards are not prepared to address these challenges – only 30% of board directors believe their organization has the right expertise on the board to advise on generative AI implementation. And management teams feel even less confident, with only 20% of leaders agreeing that their board has the right expertise in place.