Essential Questions Board Directors Should Ask Technology Leaders on AI Adoption

As artificial intelligence (AI) rapidly transforms industries and business strategies, board directors need to engage closely with their technology leaders. This engagement is vital for ensuring that organisations not only keep pace with AI advancements but also effectively harness its potential. AI adoption offers substantial competitive advantages. However, it comes bundled with its own set of challenges and risks that must be carefully navigated. This blog post outlines essential questions that board directors should pose to their technology leaders about AI adoption

Understanding the AI Landscape

Gaining a foundational understanding of AI is essential for board directors. AI includes various technologies such as machine learning, natural language processing, and robotics automation. These technologies can boost operational efficiency, enhance customer experiences, and foster innovation.

Directors should take the time to research their industry’s current AI landscape, including emerging trends, opportunities, and potential threats. For example, according to a McKinsey report named 'Superagency in the workplace: empowering people to unlock AI's full potential' (28 Jan 2025), 47% of the C suite say that their companies are developing Agentic AI too slow even though 69% have started investing a year ago highlighting the urgency of AI and Agentic AI engagement.

What is Our AI Strategy?

A fundamental question for board directors is regarding the organisation’s AI strategy.

• Is there a clear vision for AI adoption?

  
  

It is crucial to understand the strategic goals behind AI initiatives. Directors should ask how AI aligns with the overall business strategy. For instance, if a retail company aims to improve customer personalisation, they should explain how AI analytics will transform data into actionable insights to meet this goal.

• What are the key performance indicators (KPIs) for measuring success?

  
  

Clarity on success metrics is essential. Ask about the KPIs that will measure the effectiveness of AI initiatives. These could include the percentage increase in customer satisfaction scores, profits attributed to AI-driven sales forecasts, or enhanced operational efficiencies quantified in time saved or costs reduced.

What Are the Risks Involved?

AI adoption comes with inherent risks. Board directors must be aware of potential challenges.

• What are the ethical considerations?

  
  

AI can evoke ethical concerns, especially regarding data privacy, bias, and transparency. Directors should inquire about plans in place to address these issues. For instance, a healthcare organisation might implement measures to ensure patient data is anonymised and secure.

• What are the cybersecurity risks?

  
  

Integrating AI may introduce new vulnerabilities. Directors should ask what measures are in place for data protection and how the security of AI systems is maintained. In fact, a recent study indicated that 27% of organisations faced increased cybersecurity breaches linked to AI technology.

How Are We Managing Data?

Data serves as the foundation of AI effectiveness. The performance of AI systems largely hinges on the quality and quantity of data used for training the algorithms.

• What is our data strategy?

  
  

It is vital for directors to ask how the organisation manages data, including its collection, storage, and governance practices. For example, a financial institution might focus on gathering accurate transaction data to improve fraud detection algorithms.

• How are we ensuring data quality?

  
  

In addition to a robust strategy, ensuring the accuracy and reliability of data is crucial. Directors should inquire about processes in place for validating and cleaning data, not as a one-off practice but as an ongoing strategic imperative. Studies show that poor data quality is responsible for approximately 30% of business decisions leading to wasted resources.

What Skills and Resources Do We Need?

Successful AI deployment requires an equipped workforce and adequate resources.

• Do we have the right talent in place?

  
  

Directors should examine the organisation’s talent strategy. This includes understanding the talent matrix and composition and evaluate talent readiness and adequacy. Are there enough data scientists, machine learning engineers, and AI specialists to push forward AI initiatives in collaboration with the Business? For instance, a recent survey indicated that 75% of executives see talent shortages as a significant barrier to AI adoption.

• What training and development programs are in place?

  
  

Ongoing training is necessary as AI technologies evolve. Directors should ask what programs exist to upskill current employees, making them ready to work with AI tools and systems.

How Are We Collaborating with External Partners?

AI adoption often requires collaboration with external partners, such as technology vendors, Consultants, specialists and research institutions.

• Who are our key partners in AI?

  
  

Directors should inquire about the organisation’s collaborations in the AI realm. These partnerships can enhance the organisation’s capabilities and provide access to cutting-edge technologies and required skillsets.

• How are we leveraging industry best practices?

  
  

Understanding how the organisation stays informed about industry trends is important. Directors should inquire about participation in industry forums, conferences, and collaborative research initiatives. For example, being part of an AI consortium allows organisations to share insights on best practices.

What is Our Change Management Strategy?

Implementing AI can result in considerable shifts in processes, workflows, and organisational culture.

• How are we preparing for change?

  
  

Directors should ask about the change management strategies that facilitate a seamless transition to AI-driven processes and Agentic AI implementation. This includes how the organisation plans to communicate changes and ensure employee engagement.

• What feedback mechanisms are in place?

  
  

Collecting feedback is essential for ensuring successful adoption. Directors should inquire about how the organisation gathers and acts on input from employees and customers voice regarding their AI system experiences.

How Are We Measuring ROI?

Understanding the return on investment (ROI) from AI initiatives is crucial.

• What metrics are we using to assess ROI?

  
  

Directors should ask what metrics and methodologies are used to evaluate the financial impact of AI initiatives. This includes recognising both direct benefits, like sales revenue increases, and indirect benefits, such as improved customer loyalty.

• How often are we reviewing AI performance?

  
  

Regular performance reviews of AI initiatives promote continuous improvement. Directors should determine how frequently these reviews occur and how insights gained are used to refine AI strategies.

The Path Forward

As AI continues to develop, board directors must guide their organisations through the complexities of AI adoption. By asking the right questions, directors can ensure that their technology leaders are prepared to navigate challenges and embrace opportunities. Engaging in these vital discussions fosters innovation and positions the organisation for sustainable success in an increasingly AI-driven environment.

In conclusion, the questions outlined in this post while are not meant to be exhaustive, they serve as a helpful roadmap for board directors. By focusing on strategic alignment, risk management, data governance, talent development, collaboration, change management, and ROI measurement, directors can effectively steer their organisations towards successful AI integration.

How Transform and Grow can Help? Let us help your AI journey by evaluating your Organisation Readiness, to developing a Roadmap to AI and Agentic AI adoption and AI People augmentation to meet your strategic objectives. We are your strategic partner at the Board, 'C' suite, business and technology level. Click here to book a discovery meeting Transform & Grow and secure your outcome.