Apr 25, 2024 - Business

The AI board seat

Illustration of a board room table with 8 chairs, one of them a different color, surrounded by abstract shapes.

Illustration: Gabriella Turrisi/Axios

AI is forcing corporate boards to change how they operate, with the most aggressive companies appointing AI bots as observers to their boards and putting tech at the center of their board strategy work, writes Axios' Ryan Heath.

Why it matters: New uses of AI could support boards to make more informed decisions.

Yes, but: Most boards lack the expertise to effectively guide AI strategies.

  • The pace of AI innovation is pushing executives to develop AI strategies quicker than they have for previous new technologies, and boards are now part of that wave of change.

By the numbers: Only 13% of S&P 500 companies have at least one director with AI-related expertise, according to an analysis of SEC filings by ISS-Corporate, a governance consultancy.

  • Just eight companies in the S&P 500 have formal AI board oversight systems, per ISS, and only around 1 in 7 Fortune 500 boards have a broader science or technology committee.

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