Despite the surge in Generative AI, discussions about AI technologies are rarely seen at the board level due to a lack of expertise among Executives !
Nicolas BEHBAHANI
Global People Analytics & HR Data Leader - People & Culture | Strategical People Analytics Design
?? Most boards have a limited grasp of the potential applications of AI within the enterprise.
?? Nearly half (45%) of companies indicate that AI has yet to make it onto their board’s agenda at all.
? Most leaders do not believe their organization is ready for broader AI deployment
?? Only 4% of leaders say AI is incorporated throughout their near-term (next 12 months) business and operating plan.
?? Unsurprisingly, the primary strategic focus is on enhancing productivity and efficiency (66%), followed by improving customer experience (50%) and fostering new product development and other innovations, according to a new interesting research published by Deloitte Insights using data ?? from a survey of 468 board members (86%) and C-suite executives (14%) in 57 countries from May to July 2024.
?AI engagement at the board level remains minimal
Researchers have discovered that board-level engagement with AI remains limited. Across various industries and regions, AI rarely features as a topic of discussion in board meetings.
?? Only 14% of organization report that their board discusses AI at every meeting, 25% say it appears on the agenda twice a year, and 16% mention it is discussed annually. Notably, nearly half (45%) of companies indicate that AI has yet to make it onto their board’s agenda at all.
?Organizations need to accelerate AI adoption
Researchers noticed that nearly half of leaders believe that their organizations need to accelerate progress on AI implementation. Only 16% say they’re satisfied or very satisfied with the current pace of adoption, and 44% say the pace needs to accelerate.
These findings, combined with the lack of time devoted to AI on board agendas thus far, emphasize the opportunity boards have to contemplate, define, and scale AI oversight.?
?Board members have limited to no knowledge with AI
Researchers also discovered that over three-quarters of leaders (79%) say their boards have limited, minimal, or no knowledge or experience with AI.
?? Only 2% of them indicated that their boards are highly knowledgeable and experienced in this area.
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?AI is in the agenda for Productivity , efficiency and customer experience
For their plans over the next 12 months, about a third of respondents (31%) have focused efforts to incorporate AI in certain areas; 33% say they’re experimenting; and another 32% say AI hasn’t yet been incorporated into their organization’s business and operating plan over the next 12 months.
?? Researchers identified the primary strategic goals driving current AI adoption:
1?? Enhancing productivity and efficiency
2?? Improving customer experience
3?? Developing new products and innovations
Finally researchers recommend below few immediate actions boards can consider taking to bolster AI governance:
?? Put AI on the board agenda—and make it strategic. Boards that aren’t yet discussing AI should consider adding it as an agenda item.
???Define the governance structure. To effectively exercise oversight, boards will likely also need to delineate and assign AI-related responsibilities.
???Evaluate and enhance AI literacy. To effectively oversee the opportunities and threats AI can introduce, boards should ensure they and their management teams are AI literate.
?? ???? ???????????????? ????????:
Deloitte’s intriguing research highlights that customers and employees are the key groups to consider when implementing AI. However, governance and ethical use of AI are equally crucial for long-term success.
These insights, coupled with the minimal attention AI has received on board agendas so far, underscore the significant opportunity for boards to reflect on, define, and expand AI oversight.
??Thank you 德勤 researchers team for sharing these insightful findings:
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CHRO / FMCG Pharma BFSI Energy IT/Start Up specialist/HR Leader who excels in linking business strategy to people agenda. That extra zing comes with a blend of passion and values
1 个月Thanks a lot for sharing this wonderful research and sharing your point of view too. Indeed AI and human interventions , thinking have to coexist to ensure that we continue creating value
Human Resource Professional | MBA | Coporate Recruiting Professional- ASA | Ex-Wirtgen Group,A John Deere Company
1 个月AI is swiftly transitioning from a nice-to-have to a crucial competitive edge. Companies that neglect to integrate AI into their strategic agendas risk falling behind not only in operational efficiency but also in innovation and customer satisfaction. Leadership must acknowledge that the AI talent gap exists not only at the operational level but extends to the boardroom. To close this gap, investing in AI education for board members and fostering collaboration with external AI experts is essential. Just as leadership stays ahead of financial trends or market shifts, they must proactively understand the rapidly evolving AI landscape. Waiting for AI adoption to be “perfected” is not a sustainable approach. Instead, boards should embrace iterative learning, allowing small-scale AI initiatives to generate insights that can be scaled enterprise-wide. Thank you for sharing this valuable research.
Industry Veteran | Exploring Future of Work | Great Manager’s Coach & Mentor
1 个月?? It's like bringing a knife ?? to a gunfight ?? or drone fight ?? ?? Embrace AI, or miss out on the future of productivity & innovation. ?? Great recommendations by researchers. ??Thanks for sharing, Nicolas BEHBAHANI
Thanks Nicolas BEHBAHANI! This highlights a critical gap in AI governance at the leadership level. While organizations recognize the potential of AI to enhance productivity, customer experience, and innovation, the limited presence of AI discussions at the board level shows that there’s still a long way to go in bridging the expertise gap. Boards need to proactively educate themselves, make AI a strategic priority, and establish clear governance structures to ensure AI is both effective and ethical. Only then can businesses fully harness the transformative power of AI
Unleashing talent potential with real-time people analytics: Empowering HR & leaders to enhance employee experience, save time, and cultivate a culture of high performance and well-being through personal leadership
1 个月Nicolas BEHBAHANI interesting findings about the AI attention rate on board levels. I recognise the fragmented usage of AI, and in particular ChatGpt. On board level it might be a logic first step to redesign the outlook for the future. Starting to ask the question a) “where do we want to be in 2030, and what is the positive impact of it”. Then b) define what principles and values do we need to bring in? And then c) how the operational process could look like? For the c-stage use the insights of AI specialists and future thinkers. Make use of them to create a roadmap how to intertwine AI within your business.