Embracing AI: A Paradigm Shift in Business Strategy

All of our 2025 roundtable discussions have focused on AI and how boards and executives navigate its associated risks and opportunities. In these discussions, AI has been framed as a fundamental shift in business strategy, akin to the emergence of mobile technology and the internet. As companies adapt to this change, it is clear that having a robust AI strategy is essential, whether you're leading or following in this transformation.

We will continue these throughout the year as the space continues to evolve.?

Some key takeaways thus far:?

• AI as an accelerant, not just a tool: The winning companies - whether new or legacy - view AI as a catalyst for enhancing business strategies, not merely as a technological tool.
• Real challenges in AI adoption: Startups vs. large enterprises - it was pointed out that particularly large enterprises often struggle with bureaucratic hurdles in AI integration, while agile startups can implement AI solutions rapidly. A startup can establish an AI-powered workflow in a day, while a large company may take over a year for IT approvals. One area that was highlighted for these larger companies was honing in on processes, particularly in managing unique structured data as low hanging fruit opportunity.?Cultural resistance to change - Organizational resistance to AI adoption stems from compliance, risk, and bureaucratic challenges.
• Importance of data: Clean, structured data is vital for effective AI utilization. “AI’s real power isn’t in the models—it’s in the quality of data.” (dinner attendee). Many AI initiatives fail due to poor data rather than flawed models.
• Workforce dynamics: AI will likely lead to significant reductions in workforce size, as seen in a case where a 340-person team was reduced to 30 through AI implementation. Leaders must now have the foresight to navigate this reality and prepare teams for the necessary discourse planning, upskilling, and cultural transformation that will impact business.?
• Decision-making and governance: Boards must be proactive about integrating AI into their governance frameworks. Some boards treat AI as a mere checkbox rather than engaging in meaningful discussions about its strategic impact, which was a concern both in the knowledge of the board but also the understanding that to prioritize long-term viability over short-term benefits, AI strategies must be well debated and understood.

As we continue these conversations with business leaders across states, countries, and sectors throughout 2025, we will continue to highlight learnings and observations. One emerging theme is clear: the journey into the AI age demands empathy, adaptability, and a commitment to ethical leadership.

Note: if you are an AI-focused company looking to add an independent director or a leader in AI and looking to join boards, please reach out.