Board members and chairs are supposed to bring experience and guidance to organisations. How should boards adapt as AI, and in particular agentic AI, rip up the rulebook?
Artificial intelligence is creating awkward conversations for all of us. Believe me, I’m a copywriter. One of the problems that we have, is that while it’s nice to believe that AI will only automate the most mind-numbing and number-crunching tasks, it’s clear that it can play a valuable role for strategic and creative functions too. This could pose a problem for board members, whose value add is usually at the top level, and largely based on experience of a pre-ChatGPT world.
For the first article in this new series with Talent4, focused on the use of AI at a board level, I spoke with Russell Jones, who holds Non Executive Director (NED) and Chair roles, alongside consulting and fractional executive roles for several organisations, to get a better grip on what’s going on. Thankfully, Russell has a few ideas on how we can stay ahead of technology.
Four Questions to Start With
It’s important not to jump into solutions. Russell suggests that there are four questions that boards need to ask their organisations:
- How can we use AI to become more efficient and effective in what we do?
- How can we use AI to grow revenue?
- Where do the biggest risks emerge from due to the advancement of AI?
- How might our competitors get more aggressive as a result of adopting AI?
These questions still fit the remit of what you’d expect from a board. The key thing is to ensure that a business is on the right course.
“Investors don’t expect boards to be experts in AI, or quantum, or cyber,” explains Russell. “But they do expect boards to demonstrate the requisite curiosity in these areas, and to be adapting their risk and opportunity frameworks accordingly.”
——————-
AI Evolves Too
It’s not just a case of ‘getting good’ at AI, as the goalposts are constantly shifting. While AI has grabbed a foothold through process automation and chat bots, to name just a few functions, the next step is agentic AI. This takes automation a step further. In many cases agents will replace roles and either remove the need for new hires or change the nature or intensity of certain roles, and there is no doubt that they will replace the need for entire processes.
“I’m looking at how I can use AI to, for example, completely automate the lead generation and qualification part of the sales process at [company X],” says Russell, who explains that the team will have more time to focus on qualified leads and carry out the more productive parts of their roles.
AI’s evolution also requires agile thinking. Yes, it can improve things you already do, but it could also be sufficient cause to adapt your business model. Russell has witnessed this in data-led businesses, especially those relating to the Internet of Things (IoT). In telecare, for example, AI may help to prevent medical emergencies before they occur. The ability to use the data to offer actionable insights to clinicians and care staff will impact the valuation of a business and the pool of investors who’ll take an interest.
He brings this to life by mentioning a trial that’s taken place at Tunstall Healthcare, where he holds a NED position. “Instead of waiting for vulnerable people to press their personal alarm… we’re using big data and machine learning to predict when someone might have a fall.”
Russell tells me that the trial has shown very promising signs, with an 80% success rate in predicting a fall before it happens. In time, this could add immense value to customers and reduce costs within the wider healthcare system.
Are Boards Well Equipped to Do This?
The typical age of board members at publicly listed companies is believed to be around 63. This can limit the ability of some board members to play an active role in shaping and governing AI strategy. Some won’t understand the basics, nor know which questions to ask. Given that board members are often hired through the network of existing board members, it’s also entirely probable that board recruiting processes won’t be optimised for onboarding people with the right skills.
For boards to get it right, Russell advises that they introduce advisers with relevant AI expertise. “Boards need to upskill, know the art of the possible, and the risks and opportunities that come from that,” he says.
This doesn’t mean Boards becoming AI specialists. It means being capable enough to be able to offer the strategic oversight, critical thinking and governance that boards have historically been introduced for.
Staying on Top
Russell accepts that he faces the same challenges as anyone else to keep up to date and stay relevant. He mentions that his consulting and fractional roles stand him in good stead, allowing him to learn how best to adopt AI in multiple organisations and processes, keeping his horizons broad in the process. “There’s a world of tools out there,” he says. “Working across multiple organisations protects you somewhat from being almost institutionalised into one set path for AI.”
Russell is also a regular reader of AI publications, has taken courses on AI, and uses tools like Tabtabtab and Relay, while building custom GPTs with ChatGPT. Russell is doing a lot to stay current but admits that it’s a constant challenge.
To Conclude
Boards will need to ask and answer some tough questions as AI and agentic business models emerge. As Russell suggests, it’s not simply a case of greater efficiency, it can also be a matter of redefining business models, products, services and more. For those hiring new board members and reviewing the composition of their board, it’s time to ensure that you have the right talent in place.
