A new survey from Gartner, Inc. shows that 80% of non-executive directors (NEDs) believe their current board practices and structures are inadequate to oversee AI effectively.
“Boards are remarkably optimistic about AI’s potential value, even more so than chief executive officers (CEOs), chief information officers (CIOs), and other executives, when compared across Gartner studies,” said Daniel Sanchez Reina, VP Analyst at Gartner. “However, most boards recognize they are not well-equipped to oversee AI because most board members are not digital natives and lack technology backgrounds.”
Cyber-risk and technology investments
An overwhelming 93% of boards consider cyber risk a threat to shareholder value. Moreover, most (67%) believe current board practices and structures are inadequate to oversee cyber risk.
NEDs rated AI as the top investment that would lead to greater shareholder value in the next two years (63%). Other investments include technology other than AI (57%) and cyber-risk investments (39%).
Addressing gaps
Boards intend to recruit more NEDs and CEOs with technology and cyber-risk expertise to address technology-driven opportunities and gaps in current board oversight structures.
NEDs said they will need to assign more directors with technology expertise in the next 12 months (77%) and recruit more directors with cyber-risk expertise (72%). Over half (53%) believe that the technology expertise of the next CEO is a significant factor in succession planning.
The 2025 Gartner Board of Directors Survey was conducted online from June through August 2024 among 328 respondents in North America, Latin America, Europe, and Asia/Pacific who are in a Non-Executive Director role of private or public companies.
