Boardrooms are overwhelmed with data and lacking in data literacy at a time when compliance risk is increasing, according to a new survey and report.

The survey, Leadership, Decision-Making & The Role of Technology: Business Survey 2024, produced by Board Agenda and Diligent, revealed that nearly two-thirds of organisations believe their boards are not up to scratch when it comes to understanding data and artificial intelligence (AI).

There is also a concern that if executives do not have access to relevant, real-time data and analytics, and do not understand it fully when they do have it, their decision-making processes will be impaired, leaving organisations open to increased risk.

This year will see increased corporate governance challenges, according to the survey, which also found that boardrooms were clearly not short on data. Most organisations (over 92%) claim that access to data and business intelligence tools in the boardroom has increased dramatically over the past five years. However, knowing what to do with that data is key to mitigating risk and improving decision-making.

A growing role for AI

While 70.5% of organisations claim they will invest in more technology to aid their business intelligence capability over the next five years, there is a growing interest in AI’s role. According to the survey, 48% expect AI to increasingly automate decision-making by leaders in their organisation.

“The quality of the input into the data is a concern,” said one survey respondent. “The governance of how data is used both in the business and in decision-making in the boardroom needs to be explored in more detail, to understand the risks, mitigation, and consequences of making decisions on incorrect information, or whether it provides a competitive advantage.”

As the report concludes, organisations need to prioritise IT and process changes to ensure efficient and effective decision-making. They need to determine the state of organisational data; to address data literacy across the organisation, including the boardroom; connect and align processes; and explore real-time access to data analytics.

This is the basis of a data culture, an organisation driven by its understanding of the intelligence it requires to make key governance, risk and compliance (GRC) decisions. As the report illustrates, some organisations believe they are already on that road, while many believe they are not.

“There is resistance,” said one respondent, referring to other board members’ attitudes to technology. “It is a gradual process of introduction, leading on the value to the business of being more informed and being able to analyse success and failure to shape future strategy.”

Read the full report: Leadership, Decision-Making & The Role of Technology: Business Survey 2024