The AI Board Governance Compass^SM

Do Board Members understand the impact of AI in the day to day business? Do they have enough AI fluency to ask the right questions and provide appropriate oversight?

Do Board Members stay current on emerging AI ethics paradigms (particularly if relevant to company's AI use). How do AI oversight decisions impact D&O liability?

Do Board Members understand / embrace the dynamic nature of AI? ie: Board should avoid paralysis or overconfidence, practice humility and expect management decisions to be iterative.

Does the Chair ensure an inclusive and informed AI discussion at board meetings and seek external advice when relevant?

Has the Board considered a formal AI oversight structure? Does the proposed investment of time match the importance of the issue to the Company?

Does AI appear on the regular Board agenda? Is AI a portion of Board member agenda appropriate given timeliness of issue and relevance to this Company and industry?

Is AI literacy part of the Board education plan and are Board members encouraged to use appropriate and transparent AI tools to execute Board duties?

Are Board Members kept apprised of applicable AI laws, IP rights, and compliance obligations; considerations include: harm, bias, transparency, accidental sharing of proprietary or private client or employee information?

Is there a documented AI strategy aligned to business goals? What KPIs and updates are shared with the board? How does AI investment impact Budget & Projections? What are our competitors doing?

Are AI projects aligned with regulations, industry standards, laws and corporate values and culture? E.g. AI challenging sustainability commitments.

Are risks like bias, explainability, hallucinations, model drift identified and tracked? Are policies in place for data use, model testing, etc.? Who is responsible if its use fails? Can you quantify potential consequences?

Is there a strategy to support employees learning new skills and modifying their existing workflow? To what extent will AI impact expected FTE needs and related comp/benefits budget? Do efficiency gains from AI go entirely to shareholders or shared with employees?

Is there a clear policy to communicate AI use to company Customers & Employees?

Is AI use disclosed (esp. agentic AI) clearly to stakeholders/regulators?

Are stakeholders part of AI development discussions?

Does the company's AI use promote equity, or deepen systemic bias? Who benefits from the efficiency gains? How is AI impacting organizational ESG goals?