05th June, 2025
The illusion of innovation oversight: How boards are sleepwalking into AI risk

In August 2024, just a day before flying to China, I sat in a closed-door session with the board of a respected regional insurance group. The CIO, flanked by contracted AI experts, unveiled a sleek demo: a chatbot for claims processing that cut average handling time by 50%. Applause filled the room. The directors were visibly pleased that innovation was alive and well, they thought. 

As the board’s technical advisor, I interrupted the celebration with a simple question: “Who on this board understands how it works, what data it uses, or what risks it introduces?” No answers. Not one hand. Not even from the Audit Committee Chair. Read more >>

 

"Boards that don’t ask these questions aren’t delegating they’re abdicating. And in the realm of AI, abdication isn’t benign.” 

What every board member should know?

In one of my first board advisory sessions for a mid-sized bank, a veteran director leaned back, chuckled, and said, “We already approved the strategy. Now it’s management’s problem.” It reminded me of a pilot who sets a flight path, locks the cockpit, and walks into the passenger cabin midair. That board was flying blind, and they didn’t even know it.

Most board members think their job is to ask smart questions once a quarter, approve strategy, review risks, and nod at reports. This is a fatal misreading of modern governance. The times we live in today are very dynamic, where cyberattacks occur weekly, if not daily, talent is fluid, and AI is rewriting sectors in real time. The board’s role is not passive oversight. It’s active sense-making. Read more >>

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7 Tools to get on the board and add value

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