Technology is no longer just an operational tool; it is a core driver of strategy, risk, and opportunity. For boards, the imperative to innovate is matched only by the responsibility to govern technology effectively. As organizations harness emerging technologies, the boardroom must be equipped to navigate complex issues ranging from regulatory compliance and risk management to cultural alignment and investment prioritization.
Here we explore the top five boardroom conversations shaping technology governance for directors seeking to foster innovation while safeguarding organizational integrity and value.
1. Assessing the board’s technological literacy and access to expertise
- Determine whether the board, as a whole, has the appropriate knowledge and experience with technological innovation and implementation to provide strategic oversight.
- Assess the board’s familiarity with the company’s technology debt when considering opportunities to implement emerging technologies.
- Consider whether the circumstances of the company indicate the need to appoint a member with specific and relevant technology expertise.
- Discuss whether the current board structure supports the strategic technology goals, objectives, and identified risks.
- Weigh potential decisions for a dedicated technology committee, assigning technology to a specific existing committee, or keeping responsibility with the full board.
2. Remaining apprised on a shifting regulatory landscape
- Given the fast-evolving nature of data privacy, cybersecurity, and AI regulations, consider the board’s ability to confirm compliance with all laws and regulations.
- Request continuing education and updated thought leadership from counsel and other advisors, subscriptions to emerging legislative trackers, etc.
3. Engagement with management to understand risk management effectiveness
- Consider whether management has adopted a viable framework that provides accountability and instills trust in its use and deployment of AI.
- Assess whether the underlying data hygiene of the organization - including data integrity, access and privacy rights protections, effective internal controls, and system security - will enable technology to provide usable and ethical outputs.
- Evaluate management's use case identification in prioritizing the opportunity/problem being addressed versus the risk exposure to the organization.
- Assess how human supervision and continuous monitoring are built into the process to identify and mitigate issues promptly.
4. Cultural alignment and workforce preparation
- As technology is being integrated and implemented, consider the appropriateness of training and upskilling the workforce to use and monitor new tools, identify and remedy associated risks, and comply with internal policies, procedures, and external rules and regulations.
- Determine the existence and robustness of cross-disciplinary change management to foster a cultural of innovation acceptance and empowerment.
- Discuss management strategies in place to address cultural and operational challenges to widespread adoption and use.
- Assess the quality and effectiveness of communication throughout the organization to drive employee understanding of the use cases being deployed, changes to workflows, and how their roles may continue to evolve.
5. Prioritizing technology investment
- Consider the process applied by management for evaluating use cases against the mission, values, and agreed upon strategy of the organization.
- Determine whether management’s technology strategy focuses not only on the investment in specific tools and their implementation but includes adequate investments in security and risk management.
- When planning to deploy AI technology, consider whether critical input is being provided by others responsible for related risks such as cybersecurity teams, general counsel, finance, human resources, and operations.