Why AI readiness should be top of your board’s agenda

Artificial Intelligence has moved beyond the pages of white papers and into the heart of decision-making. 

From agenda planning to risk oversight, AI is already influencing the pace and depth of boardroom conversations. And yet, many boards remain unsure how to respond. 

Is your board equipped to ask the right questions? To govern responsibly? To identify which opportunities to seize, and which to scrutinise?

AI readiness isn't just a technical metric, it’s a reflection of a board’s ability to govern with vision, embrace change with confidence, and safeguard ethical oversight in uncharted territory. It demands clarity on roles, fluency in the language of AI, and an honest assessment of current capabilities.

This article offers a structured way to evaluate where your board stands today, and what’s needed to step forward with conviction. Because in a landscape shaped by disruption, preparedness is the real advantage. Here’s what we’ll cover: 

• What AI readiness means in governance 
• How to build the foundations for AI readiness at the board level 
• How to practically assess your boards AI readiness in meetings
• Concrete next steps for your board to govern ahead

Why AI readiness is a governance priority 

“AI tools are reasoning, problem-solving, and accelerating innovation at an unprecedented pace,” explains Chuck Whitten from Bain & Company, “This shift is already redrawing competitive boundaries.” AI readiness therefore means more than having the right technology. It reflects whether your board can lead with foresight and act with integrity in a fast-moving environment.

Boards are expected to guide organisations through complexity. Today, that includes overseeing the use of Artificial Intelligence. Whether it’s accelerating data analysis, improving ESG reporting, or automating meeting minutes, AI is already in the boardroom. The question is not if, but how your board responds.

Readiness isn’t simply a question of technical understanding. It encompasses strategic alignment, ethical foresight, and a willingness to challenge outdated thinking. Boards need to make sure they’re not only informed, but are equipped to shape how AI is deployed and governed across the organisation.

Boards that fail to assess their readiness risk more than inefficiency. They risk falling behind, misunderstanding risks, or missing critical moments to act. Evaluating your board’s readiness is the first step to turning uncertainty into clarity, and technology into a competitive edge.

What does AI readiness look like for boards?

AI readiness at board level means knowing how to lead, not just listen. It calls for more than awareness. It requires a shared framework for action.

To evaluate readiness properly, boards need a structured lens. The following five pillars provide a clear foundation for understanding what a future-facing board should look like when engaging with AI:

1. Strategy and vision

Is your board aligned on how AI fits into the long-term direction of the organisation? Readiness begins with a shared view on AI’s potential, limitations, and strategic role. Boards must help define how AI supports the business model, not just approve experiments.

2. People and expertise

Does your board possess the skills and understanding to challenge, support, and guide management on AI matters? As Leo Strine, Lawyer at Wachtell, Lipton, Rosen & Katz & former court head explains, “AI is exceedingly complex, putting stressors on generalist boards and their reticence to demand explanations from management.” 

Therefore, answering this question may include direct expertise, ongoing education, or access to trusted external advisors. A knowledge gap at board level can weaken oversight.

3. Processes and analytics

Are your board processes equipped to surface and digest AI-driven insights? From reporting cycles to decision reviews, your board should be able to handle complex data and draw out what matters. Readiness means being confident in both the quality of information and how it’s used.

4. Ethics and oversight

Has your board set guardrails to manage ethical implications surrounding your use of AI? Issues like data bias, accountability, and transparency should not be left to chance. Strong boards set the tone on responsible AI use and ensure appropriate safeguards are in place. 

Carine Smith Ihenacho, Chief Governance & Compliance Officer, Norges Bank Investment Fund, stresses the importance of getting this right, explaining, “Boards need to collectively understand AI applications and establish responsible policies.”

5. Culture and collaboration

Is your board culture open to innovation and challenge? Readiness includes fostering a culture that welcomes new perspectives, encourages cross-functional dialogue, and avoids groupthink. A curious board is often a more prepared one.

As Tom Petro, Board Governance Expert, highlights, “Boards must ensure that management fosters a culture prepared for AI… even the most advanced AI tools will struggle to deliver meaningful results.”
 

Building the foundations for AI readiness

AI can’t thrive without the right foundations. For boards, readiness depends on more than good intentions. It depends on whether the organisation is truly prepared to support responsible, effective AI use. And there is a time pressure for this change to be affected. As Lottie O’Conor explains in the Financial Times, “AI transformation is still in its early stages, but there is a growing impetus for action.”

Start with the data. After all, AI runs on information, and if your board hasn’t stored data in a usable way, it really will be “rubbish in, rubbish out”. Your boards should be confident that data management is mature enough to support trustworthy insights.

Next comes infrastructure. This includes both the physical systems and the internal processes that enable AI to function securely and at scale. Boards should ask how well AI is integrated into existing workflows and whether technical debt might be a hidden blocker.

Then consider alignment. AI initiatives must reflect the company’s goals, not distract from them. Boards should ensure that AI investments are linked to clear outcomes. Whether it is improved decision-making, reduced risk, or better stakeholder engagement, the purpose must be crystal clear.

How AI readiness transforms the quality of board meetings

If AI readiness lives anywhere, it shows itself in the meeting room. The habits, questions, and tools used around the board table reveal how prepared your board truly is, and yet many board members are failing to understand the significance of this shift. According to Stanislav Shekshnia, Senior Affiliate Professor, INSEAD & Board Chair at Technoenergy AG, “Few board members recognise AI’s potential to help them prepare for and engage in substantive, well‑informed, and strategically focused discussions.”

AI-ready meetings go beyond tools, and into  mindset. You can tell a board is ready when members ask the right questions, about risk, ethics, strategy and execution. You can tell when chairs leave time for deeper conversations, and when agendas make space for topics that don’t yet have clear answers.

AI-ready boards approach meetings as a place to explore the unknown, not just review what’s known. And they view efficiency not as a shortcut, but as a chance to spend more time on what truly matters.

Board AI readiness in action: How to assess where you stand

Knowing the theory is one thing. Understanding where your board stands in practice is where the work begins.

Start by bringing the five readiness pillars into a structured self-assessment. Ask each board member to reflect individually, then compare results collectively. This encourages honest conversations and reveals gaps that may not surface in standard reporting.

Start by evaluating your board’s AI readiness along a simple scale:

• Reactive: Discussions about AI are rare or ad hoc. The board relies entirely on management for updates.
• Informed: The board engages in AI-related topics, but lacks a shared framework or clear oversight role.
• Proactive: AI is regularly reviewed from strategic, ethical and operational angles. The board challenges assumptions and supports thoughtful adoption.
• Transformative: The board leads from the front, shaping how AI is embedded into governance, risk and performance. It learns continuously and adapts with agility.

Involve voices beyond the boardroom. Executives, IT leaders, compliance teams and even external experts can provide valuable context on how well AI is being governed in practice. Their insights will help you stress-test assumptions and strengthen board-level understanding.

If you’re ready to go deeper into how your board can unlock the power of AI in meetings, we’ve created a practical AI Readiness Assessment. In five minutes, you’ll get a clear view of how well your board is prepared to use AI for sharper decisions, smoother processes and stronger oversight.

Download it below: 

Governing for the future demands AI readiness

AI will continue to challenge assumptions and rewrite the rules of leadership. The boards that succeed will not be those with the flashiest tools, but those with the clearest judgment, strongest foundations, and sharpest questions.

Evaluating your board’s readiness is not a box to tick. It is a commitment to learning, to leading with purpose, and to staying ahead in a landscape that will not wait. The conversations you start today will shape the decisions you make tomorrow.

Now is the moment to act. Not by rushing to adopt the latest AI solution, but by making sure your board is ready to lead with confidence, insight and integrity.

If you're ready to unlock the power of AI in your board meetings, book a free consultation with one of our meeting experts today and find out how Sherpany can help.