Corporate leaders prioritize AI governance amid rising data risks

In 2025, technology and AI governance emerged as critical subjects for corporate directors and executives across the globe, emphasizing the urgency to protect data while navigating new technologies and sharpening skills throughout their organizations. A significant survey conducted by the National Association of Corporate Directors highlighted that a substantial number of the top ten trends for directors revolve around the effective governance of technology, pointing to its increasing importance in strategic business considerations. Furthermore, WTW’s risk survey revealed that data loss and cyberattacks rank among the highest threats faced by organizations, necessitating robust oversight frameworks. As businesses recognized the transformative impacts of AI, many leaders began altering their governance structures, transitioning from conventional risk management approaches to more dynamic and responsible governance models that adapt to the rapid advancements borne from AI innovations. Traditional methodologies often fall short when confronting the specific challenges and opportunities presented by AI, leading to calls for more proactive governance strategies that align with organizational values. This shift underscores the complex landscape executive leadership must navigate, particularly since surveys indicate that many boards lack comprehensive understanding regarding both the implications of AI and their roles in its governance. To address these challenges, researchers Ludwig and van Giffen identified four critical categories that can guide boards in their governance of AI. First, integrating AI into business strategy is essential, as leaders must consider how AI influences their operational decisions and help secure investments necessary for AI capabilities. Additionally, cognizance of the emerging AI risks is crucial, requiring boards to oversee ethical concerns, reputational damage, and compliance with established laws. Moreover, technological competence within governance bodies emerged as a fundamental requirement. Boards that prioritize their members’ familiarity with AI technologies effectively facilitate informed decision-making. By ensuring that directors possess a foundational understanding of AI, they can foster an environment ripe for discussions about its governance, thereby enabling organizations to maintain robust oversight in a landscape increasingly characterized by AI's evolving nature, ensuring that proactive measures are taken to govern its deployment responsibly.