Artificial intelligence has made a fast leap from a specialized technology to a central topic of discussion in boardrooms. As companies implement AI solutions in record time, boards must now get on board with AI-induced risks. In short, boards must avoid being swamped by this tidal wave of AI innovation, learning to become more informed and resilient in their approach to AI governance.
Navigating a broader risk landscape
To their credit, boards are now more cyber-savvy than ever before, thanks largely to firsthand experiences with breaches and increasingly common cyber intrusions. The hasty embrace of AI has brought additional complexity, with threats widening from cybercriminals to employee misuse of AI tools.
A recurring, provocative question, "If attacks are inevitable, why not just pay the ransom?" reflects deeper concerns about resource allocation and the true value of cybersecurity programs. Boards are increasingly questioning whether their investments are really lowering risks or just hastily responding to them.
The evolving CISO role
Over the past decade the CISO's role has changed remarkably. Once viewed as a behind-the-scenes position centered on technical defenses, today's CISO must coordinate with CEOs, CFOs and board members, while also working with marketing, product development and legal teams.
To keep up with rising expectations, CISOs must shift from delivering technical expertise to delivering narratives about AI-related risks in a language the board understands. CISOs must showcase how
For instance, in a software firm, the CISO would explain how integrating security controls can make a product stand out in a competitive market. In consumer goods, the emphasis would be on defending customer data and delivering seamless and secure experiences.
This shift requires empathy, communication skills and a deep understanding of the business. For this, CISOs must build strong relationships across departments, listen actively to varied viewpoints, and tailor communications to suit each stakeholder group's priorities.
Establishing fluency and trust in boardroom interactions
Successful board engagement starts with trust. Incoming leaders, no matter their background, must establish credibility through meaningful connections and by consistently proving their worth.
Another powerful tool is board experience. CISOs are encouraged to join nonprofit boards as a way to get real-world experience with governance. This experience offers an opportunity to better understand what boards care about and to prioritize oversight and strategic influence over day-to-day operations.
Boards, in turn, need to see that their role goes beyond just financial stewardship. They are instrumental in ensuring the organization's ability to bounce back, be agile, and prepared to respond to disruption. This includes quantifying acceptable downtime, ensuring the availability and integrity of backup systems, and determining the rate at which business may be restored after a security incident.
Striking a balance: Compliance vs. usability
Although compliance is still a pillar of good governance, it needs to be carefully weighed against user experience. Overly stringent security protocols, like frequent password reset requirements, can end up causing counterintuitive end-user behavior, including users writing down their credentials in order to keep pace. Boards must make sure security tools are both efficient and user-friendly, finding a balance between regulatory compliance and operational convenience.
This serves to underscore the need to engage with end users and understand the real-world impact of security policies. Governance should therefore encompass the entire organization, from the boardroom to the front lines.
AI Governance: Balancing risk and reward
AI is raising high expectations as well as serious challenges. Boards are excited by the potential for profitable growth but likewise are wary of consequential risks.
Organizations are exploring AI without formal governance guardrails in place, a shortfall that is increasingly seen as a serious omission. To address this, boards need to work with CISOs, CIOs, legal, and risk officers to create inclusive AI policies.
More importantly, boards should be involved in shaping these policies and not just reviewing them. Getting actively involved helps create a sense of ownership and gain valuable insights into the bigger picture of adopting AI.
Resilience through knowledge and foresight
Boards are also asking more human-centric questions: What is the readiness of the workforce for AI? How disruption-ready is the organization? These questions mirror a larger movement toward balanced governance that considers culture, capability and continuity.
Tabletop simulations can help boards with a chance to walk through real-world AI scenarios before they happen, helping them see the ripple effects of potential incidents and sharpen their response plans. These exercises instill confidence and make directors ready to make smart decisions when time requires them to.
In essence, effectively engaging boards on AI risk demands a comprehensive strategy that includes blending compelling narratives, cross-disciplinary teamwork and continuous education. While CISOs must push beyond their technical comfort zones to become champions of business strategy, boards must lean into their expanded role as leaders in innovation and resilience.
When boards establish trust, align cybersecurity with business objectives, and remain hands-on in governance, they are better positioned to lead confidently through the twists and turns of AI. In doing so, they not only protect their organizations but also unlock the game-changing opportunities that new technologies offer.
