01Question one: What is our AI strategy, and how does it connect to business outcomes?
This sounds obvious, but a surprising number of executive AI presentations describe activity rather than strategy. They report on tools deployed, pilots running, or training completed, without connecting any of it to the strategic objectives the board has approved.
A board should insist on seeing AI investments mapped against specific business outcomes: revenue growth, cost reduction, customer retention, risk reduction, or competitive positioning. If the executive team cannot make that connection clearly, the AI programme lacks strategic focus and the board should say so.
02Question two: Who is accountable for AI outcomes, and what happens when something goes wrong?
Accountability is the area where AI governance most often breaks down. AI projects tend to be cross-functional, which means accountability is diffuse. The CIO owns the technology. The COO owns the process. The CHRO owns the workforce impact. Nobody owns the outcome.
Boards should insist on named executive accountability for material AI deployments. This means one person who is responsible for results, answerable to the board for failures, and empowered to make the decisions needed to drive success. Without this, AI governance is a committee, which is another way of saying it is nobody's responsibility.
03Question three: What data are we using, and is it fit for purpose?
The quality of AI output is determined almost entirely by the quality of data input. An AI system trained on incomplete, biased, or poorly governed data will produce outputs that reflect those problems, often invisibly.
Directors should ask to see data quality assessments for material AI deployments. They should ask whether sensitive personal data is being used and how it is being governed. They should ask what data the third-party AI vendors they are using have access to, and under what contractual terms. These are not technical questions. They are the kind of data stewardship questions that boards are already expected to ask about GDPR compliance.
04Question four: How are we managing AI risk?
AI risk is not a single category. It includes operational risk (the AI makes wrong decisions at scale), reputational risk (the AI produces outputs that embarrass the organisation), regulatory risk (the AI deployment is non-compliant), security risk (the AI system is a vector for cyberattack), and strategic risk (we are building dependency on a vendor whose alignment with our interests may change).
Boards should ask to see an AI risk register that covers each of these categories for material deployments, with named owners and mitigation plans. If the organisation does not have one, that is the first governance gap to close.
05Question five: How are we measuring AI performance, and against what baseline?
"The AI is working well" is not a board-level update. Directors should expect to see quantified performance data: productivity metrics, error rates, cost per transaction, customer satisfaction scores, time savings, revenue attributable to AI-assisted processes. They should also see baseline comparisons, so they can judge whether the AI is delivering improvement rather than simply being deployed.
Vanity metrics (number of users, number of prompts, licence utilisation rates) are not business metrics. A board that accepts vanity metrics as evidence of AI success is not governing the programme. It is approving the activity.
06Question six: What is our competitive AI position, and how do we know?
Boards regularly ask about competitive position in markets, products, and talent. They should apply the same discipline to AI capability. This means asking for competitive intelligence on AI adoption in your sector, benchmarking your organisation's AI maturity against peers, and understanding where capability gaps exist.
For organisations working with Microsoft Copilot, this includes understanding utilisation rates against Microsoft benchmarks and adoption rates across the business compared to what peer organisations are achieving. Without competitive context, a board cannot judge whether its AI programme is a source of advantage or a table-stakes catch-up exercise.
Key Takeaways
- 1.Boards should demand AI updates tied to business outcomes, not activity reports describing tools deployed or training completed.
- 2.Every material AI deployment needs a named executive accountable for outcomes, not a cross-functional committee.
- 3.Data quality, data governance, and third-party data access are board-level oversight responsibilities, not just technical concerns.
- 4.An AI risk register covering operational, reputational, regulatory, security, and strategic risk should be a standard governance document.
- 5.Competitive AI benchmarking should be a regular board agenda item, just like market position and talent.
References & Further Reading
- [1]Corporate Governance and Artificial Intelligence: FRC GuidanceFinancial Reporting Council
- [2]AI Governance in the Boardroom: Deloitte SurveyDeloitte Insights
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