Earlier this year, the IoD Policy Voice Survey found that nearly two-thirds of directors now personally use Artificial Intelligence (AI) tools to aid their work.
In addition, over half of UK companies reported experimenting with AI in some form.
Across the UK business landscape, we’re seeing new forms of AI being embedded in marketing strategies, financial modelling, supply chain optimisation, and even recruitment processes. Directors are nevertheless still concerned about overhyped claims and lack of reliability.
This widespread adoption signals a profound shift; we need robust governance to ensure that potential is unlocked in a way that is responsible and minimises risks to the business and wider society.
The technology’s potential is immense, but for directors, many opportunities and risks aren’t yet clear. Without proactive governance, businesses risk not only falling behind competitors but undermining trust amongst customers and stakeholders.
Sharing her thoughts on the AI governance gap, Dr Erin Young, Head of Innovation and Technology Policy at the Institute of Directors comments: “AI tools, technologies and systems require proactive governance at board level.
“It’s not just about technical implementation; AI must now firmly be on the board agenda and considered as an essential part of governance responsibilities. While many directors recognise AI’s potential, far fewer report having structured oversight, risk frameworks, or dedicated expertise in place.
“This governance gap is unsustainable. Just as boards are expected to oversee financial, environmental, and cyber risks, they must now also demonstrate leadership in navigating AI’s potentially transformative as well as disruptive impacts. A key challenge is not simply deploying generative AI tools, for example, but doing so in a way that stands up to scrutiny. Directors need to be confident that any system in use across the organisation, whether built in-house or procured from external providers, can be clearly identified and audited. Without this level of transparency, it becomes difficult to manage risk, demonstrate accountability, and build trust among stakeholders.
“New forms of AI should not be introduced for novelty’s sake. Without clear direction, organisations can end up with fragmented systems that fail to deliver value or align with broader business objectives. Every application should instead be guided by high-level goals that reflect the organisation’s vision, purpose, and values. By grounding adoption in this way, boards can ensure AI contributes to long-term strategy.”
Directors must understand:
- Where might AI unlock new revenue streams, business models or streamline processes?
- What commercial, reputational or financial risks might be introduced?
“AI governance is not merely about compliance; it is about building competitive advantage. The aim is not to slow down innovation, but to guide it responsibly. Customers, employees, and investors are increasingly attuned to whether businesses deploy AI accountably. Supporting lifelong learning and fostering digital literacy across organisations to support this will be critical for sustainable success.”
To ensure businesses are not only prepared for but are actively leading the charge, the IoD and the University of St Andrews Business School have partnered to offer the Global Certificate in Company Direction.
This exclusive programme provides forward-thinking professionals with the insights, expertise, and connections needed to navigate the complexities of today’s business environment, from AI advancements and boardroom accountability to geopolitical uncertainty and the climate crisis.
The course delivers practical, high-impact learning and executive coaching, equipping leaders with the tools to drive successful organisations. Investing in the Global Certificate is a strategic imperative for businesses seeking to cultivate agility, integrity, and sustainable impact in an ever-changing world. With limited places available, secure your spot now to gain a competitive edge and join a network of global leaders shaping the future of business.
