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The Society for Corporate Governance and Nasdaq Governance Solutions released: "AI In and Around the Boardroom: A Tale of 2½ Cities," summarizing key findings from a collaborative virtual roundtable discussion and benchmarking survey on the evolving use of artificial intelligence in corporate governance and board operations. The discussion, held under the Chatham House Rule, explored how governance professionals and boards are approaching AI adoption, including practical use cases, governance considerations, and emerging risks.
The report highlights that while AI adoption in governance functions remains in its early stages, many organizations are actively exploring its use to improve efficiency, streamline preparation of board materials, enhance document summarization, and support searchability and organization of information. At the same time, boards and governance teams continue to express significant concerns regarding accuracy, confidentiality, legal exposure, data security, and oversight.
The findings also suggest that AI adoption among directors is evolving differently than among governance professionals. While approved boardroom AI tools remain relatively limited, the report notes growing concern that some directors may independently use external AI tools outside approved company systems, supporting the need for clearer governance frameworks, education, and guidance.
According to the report, while still in the early stages, organizations are increasingly developing policies and frameworks addressing areas such as approved AI tools, data security, confidentiality, accountability, ethical use, and vendor risk management. Roundtable participants emphasized that AI cannot replace judgment, but may serve as a tool to enhance board effectiveness, support director engagement, and improve governance processes when implemented thoughtfully and responsibly.
The report concludes that governance professionals will play a central role in helping boards and management navigate AI adoption by developing appropriate safeguards, educating stakeholders, and integrating AI governance into broader corporate governance and risk oversight frameworks.
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