Course: AI Governance & Policy Frameworks Pathway: Governance (Paid) Level: Advanced Estimated Reading Time: 8 minutes
If you're a board member reading this, here's the uncomfortable truth: AI is no longer a technology decision that can be delegated to the CTO and forgotten. It's a strategic, operational, and fiduciary issue that sits squarely within the board's oversight responsibilities.
Most boards aren't ready for this. A 2024 survey by MIT Sloan found that only 24% of boards reported having adequate AI expertise to provide effective oversight. That's not a criticism — AI has moved extraordinarily fast. But it is a problem, and it's one that boards need to address deliberately.
Fiduciary duty. Directors have a duty to act in the best interests of the organisation with reasonable care, diligence, and skill. When AI systems are making or influencing decisions that affect customers, employees, and the public — and when those systems carry material risks — oversight of AI is part of that duty. Ignorance is not a defence.
Strategic significance. AI is reshaping competitive dynamics, operating models, and entire industries. Boards that don't understand their organisation's AI strategy — and its risks — can't fulfil their strategic oversight role.
This lesson is part of AI Policy & Compliance for NZ Workplaces — a paid course (NZ$39.00). Enrol to unlock the full lesson, audio, and completion tracking.
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