AI: A Partner in the Boardroom?

What are the risks and benefits of bringing on AI as a fellow director?

Picture the boardroom of the near future: The CEO sits with financial experts, business executives, industry veterans and shareholder representatives. But alongside them is another voice — not human, but algorithmic. The future of governance isn’t about an “AI director” casting votes. It’s about a new human/AI partnership that will reshape how boards make decisions tomorrow.

An AI agent as a board partner isn’t science fiction. In fact, it was a primary topic at the National Association of Corporate Directors conference in October 2025. One CEO presenter shared that he uses AI to predict what questions directors will ask so he can be best prepared for his board meeting. At the recent Fortune Most Powerful Women Summit, another CEO said they use AI agents in almost every board meeting for summarizing, note-taking and idea generation. The key question is not if or when AI will enter the boardroom as a powerful partner, but how and in what capacity this will happen. How should directors think about whether the board should make room for another voice? Here are some thoughts to consider.

Benefits

Sharper insights from data. Boards today face overwhelming volumes of information. AI’s strength lies in turning that flood into clarity. It can scan financial filings, global news, research reports and social media postings to spot patterns invisible to human eyes. It can offer an early signal of a supply chain disruption or an overlooked acquisition target. It can help prioritize human focus on the most important topics to be discussed and decisions to be made. Directors are already using AI for their own research and understanding.

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Objectivity beyond human bias. Directors are skilled, but they are human. They are subject to groupthink, overconfidence or the pull of personal loyalties. Directors want to be collegial and collaborative. AI does not care about office politics, personal relationships or sensitivities. While AI models may have implicit biases and ones that must be monitored and tested, AI delivers a data-driven perspective, a possible counterweight to subjective bias.

Modeling the “what ifs.” Strategic decisions are riddled with uncertainty. Which market should we enter next, and what factors should we consider? Which of four acquisition targets should we pursue and what forecasts are reasonable? AI can simulate complex scenarios instantly, offering directors robust insight into a multitude of risks and likely outcomes with a depth humans cannot match. It can help test ideas and potential outcomes prior to significant investments in resources and talent. Companies are already doing this. Why not the board?

Always on, always watching. An AI assistant never tires. It can monitor compliance, performance and external threats around the clock, alerting directors before issues escalate. For governance, that real-time vigilance could be transformative.

Better board processes. AI could even examine the board itself: identifying skill gaps, testing group dynamics, or streamlining meeting agendas and meeting material. Oftentimes, management shares all their managerial reports with their boards, sometimes overwhelming directors. Management can leverage AI in preparing and summarizing board materials so that directors’ time and skills can be better utilized with more enriching discussions that are better supported by shorter, more meaningful board materials.

Of course, there are important considerations that need attention before AI can be invited to the boardroom table.

Risks

The black box. Many AI systems reach conclusions without clear explanations. For directors with fiduciary duties, “Trust me” is not an option. Human accountability cannot be outsourced to opaque algorithms. Traceability of insight/recommendation reasoning cannot be abdicated, nor can judgment be outsourced. It is essential to prompt AI with context and thoughtful questioning so it can provide detailed reasons for its conclusions. Directors will still have to determine whether the reasoning is valid.

No intuition or ethics. AI can crunch numbers and generate insights but cannot yet exercise empathy or moral reasoning. It may propose layoffs to boost margins without appreciating reputational damage or cultural fallout. Ethics and trust remain firmly human responsibilities.

Legal and liability gaps. Corporate law requires directors to be natural persons. AI has no legal standing and cannot be held accountable. If its advice contributes to failure, responsibility still rests with human CEOs and directors.

Bias and manipulation. AI is only as reliable as the data used to train it. Historical bias can be baked into its recommendations. Worse, malicious actors could manipulate data streams, change inputs to influence analysis or hack systems to skew outputs. Again, human judgment and deep questioning are essential.

Overdependence. As AI gets better, directors have to protect against overreliance on a tool that not many truly understand or can leverage effectively. Training and education for directors will be critical to ensuring long-term success in the use and realization of benefits from AI.

Erosion of debate. An “infallible” AI voice could intimidate directors into rubber-stamping decisions, weakening the diversity of viewpoints that is vital to board effectiveness. Directors might become overly reliant on AI for decision-making rather than doing the work, reading the board material and taking in input from multiple sources.

A Necessary (and Inevitable) Partnership

No one would suggest giving AI full control. Think of aviation: Autopilot is indispensable, but no one would board a plane without a pilot in the cockpit, not quite yet at least. The same logic applies to corporate governance. An AI agent is only one voice among many human experts.

The short-term future for AI in the boardroom resides in partnership. AI can sift data, run simulations, generate insight and recommendations, and monitor risks. Humans must provide judgment, ethics and vision. Used wisely, AI becomes a powerful copilot, one that helps directors navigate complexity without surrendering responsibility. 

What Should Board Directors Do Now?

Forward-looking boards should not wait for regulators or competitors. Before bringing an AI agent into the boardroom, they should begin to:

  • Invest in digital literacy and education so directors are familiar with what is possible, and how AI could be used.
  • Pilot AI tools for risk monitoring, compliance, data and scenario analysis.
  • Require transparency and explainability of AI insights from management.
  • Ensure data security for information storage and access.
  • Establish ethical guidelines for responsible AI use.

The boards that act now, blending human wisdom with AI’s analytical power will set the standard for corporate governance in the 21st century. Those that hesitate may find themselves governed not by strategy, but by complexity they can no longer control. The choice isn’t whether AI will enter the boardroom. It’s whether directors will shape that future intentionally or be shaped by it.

About the Author(s)

Pat Hedley

Pat Hedley is an advisory board member of Lone Pine Capital and an advisor to organizations such as The Cranemere Group, Headstart and Sugarwork. She was a director of Stax Consulting and a managing director of General Atlantic.


Sigal Zarmi

Sigal Zarmi is a member of the boards of GoDaddy, ADT and JFrog, and senior advisor at Boston Consulting Group. She was managing director and international chief information officer of Morgan Stanley and vice chairman and global and U.S. chief information officer at PwC.


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