Skip to content

8 August, 2026

  • Saved Articles
  • My Account
  • Subscribe
  • Log In
  • Log Out

Board Agenda

  • Governance
  • Strategy
  • Risk
  • Ethics
  • News
  • Insight
    • Categories

      • View all
      • Governance
      • Strategy
      • Risk
      • Ethics
      • Board expertise
      • Finance
      • Technology
    • leadership crisis

      How to fix the leadership crisis

      Unpopular opinion? It’s time for organisations to shift away from feelings to focus on competency...

      AI behaviour

      How do you measure AI adoption?

      It’s easy to produce metrics on AI software deployment, but these are pointless without tracking...

      prestigious board

      The hidden risk of prestigious boards

      High-profile directors bring experience, influence and credibility—but may lead to challenge being reduced and governance...

  • Comment
      • View all
    • leadership crisis

      How to fix the leadership crisis

      Unpopular opinion? It’s time for organisations to shift away from feelings to focus on competency...

      AI behaviour

      How do you measure AI adoption?

      It’s easy to produce metrics on AI software deployment, but these are pointless without tracking...

      risk management

      Why risk management requires good judgement

      Relying on probability models and mitigation plans is not enough—boards need to focus on making...

  • Interviews
      • View All Interviews
      • Podcasts
      • Webinars
    • governance

      How better governance helps private companies grow

      If governance is to become mature, management decision-making has no place on the board’s agenda,...

      future-ready

      Is your board ‘future-ready’?

      The survival of a business in uncertain times depends on its ability to pivot as...

      investor confidence

      Lack of audit reform ‘will hit investor confidence’

      Government's failure to push ahead with audit reform is a risk to UK investments, the...

  • Board Careers
      • View All
    • female ceos

      FTSE 100 CEO appointments rise

      The number of CEO appointments has doubled in six months, although the global picture suggests...

      board role

      How to engage with outreach

      When board opportunities knock, should you answer the door? Here are tips from a new...

      growth

      Governance Guide: How boards drive growth

      The strategic role of the board is changing rapidly, in line with a shifting world....

  • Resource Centre
      • White Paper Downloads
      • Book Reviews
      • Board Advisory & Corporate Services
    • FRC Annual Review of Audit Quality 2026

      This Financial Reporting Council report uses findings from its supervisory activities to assess audit quality...

      Governance Guide: How Boards Drive Growth

      This Board Agenda Governance Guide investigates how directors can evolve to drive performance and growth...

      Organizational Transformation in the Age of AI

      This World Economic Forum paper looks at how organisations must re-architect their workflows and operating...

  • Events
  • Search by topic
    • Governance
    • Strategy
    • Risk
    • Ethics
    • Regulation
    • ESG
    • Investor Relations
    • Careers
    • Board Expertise
    • finance
    • Technology

Stewarding AI: governance needs to catch up

by Andrew Kakabadse and Nada Kakabadse

Artificial intelligence is transforming not only technology and how people do their jobs, but also reshaping leadership thinking.

stewarding AI

Image: Usman85971/Shutterstock.com

Favorite

Just a short while ago, most white-collar professionals barely noticed the presence of AI in their daily work. But everything has changed.

The arrival of generative AI—powerful tools that understand and create human-like language—has shifted the landscape dramatically since 2023. These tools aren’t simply enhancing productivity—they’re reshaping the roles of professionals and how work gets done.

By early 2023, ChatGPT 4.0 was outperforming human candidates on major accounting tests.

Take accounting, for example. When ChatGPT 3.5 was released in late 2022, it couldn’t pass major accounting exams. But, by early 2023, ChatGPT 4.0 was outperforming human candidates on tests such as the CPA and CMA.

In less than a year, it surpassed expectations and raised a profound question: what does professional excellence look like when machines can match—or exceed—human capabilities?

AI could automate up to 60% of the tasks performed by degree-holding professionals—and possibly up to 98% by 2030. For boards and leaders, this is a pressing call to prepare.

The human-AI gap

One emerging challenge is the sheer gap in processing power between humans and machines.

Human thought runs at about 10 bits per second. Meanwhile, our senses absorb a billion bits, while Wi-Fi handles 50 million bits per second.

AI systems analyse and act on vast amounts of data in parallel, something humans simply aren’t capable of. A chess master thinks through a handful of future moves. An AI engine evaluates millions at once.

So, how do people keep up, let alone collaborate, with something which ‘thinks’ that fast?

Preparing people for AI-enhanced work

Upskilling is a given, but it’s not just about learning how to use new tools; it’s about evolving how we work and think.

Professionals need to lean into a new set of core competencies: communication, critical thinking, leadership, adaptability and ethical decision-making.

Leaders must not only use these tools, but also understand how they transform interaction itself.

These skills must be transferable and ready to apply across roles and industries as AI redraws the boundaries of work. Communication especially needs a rethink. The line between spoken and written language is fading, as AI now powers everything from speech-to-text through to presentations. Leaders must not only use these tools, but also understand how they transform interaction itself.

Contrary to what some may fear, writing isn’t becoming obsolete—it’s becoming more important. But the focus is shifting somewhat.

Effective writing in an AI world must be strategic, ethical and inspirational. Professionals will need to write with purpose in order to motivate, lead and clarify. Creativity will matter even more.

At the same time, AI can bring ethical pitfalls. It may distort the truth, introduce bias or mishandle private data. This is why writing today requires more than just skill—it demands integrity.

The board as ethical steward of AI

Boards now face a critical test of leadership: as AI becomes central to business operations, oversight cannot be treated as an afterthought. Ethics have to be front and centre—beginning with data privacy, algorithmic bias and an appreciation of the impact on jobs and workplace relationships.

Transparency is essential. Boards must foster open dialogue around sensitive issues. Employees need clarity and reassurance as roles evolve.

This demands a high bar for governance. Integrity, courage and strategic vision aren’t merely ideals—they’re non-negotiable. Boards must also apply ethical frameworks, from virtue ethics through to consequentialism—all with the purpose of guiding decisions and fostering a culture which is grounded in trust.

Leading with vision and empathy

In an AI-enhanced workplace, leadership needs to become more ‘human’ than ever. Inspiring teams, nurturing creativity and championing collaboration should be at the forefront of leadership thinking.

Boards will want to push for policies that ensure AI benefits everyone, not just the few.

Boards need to model these traits and empower their senior leaders to do the same. A new approach also means taking the long view. Equity and inclusion must remain at the forefront of AI deployment. Boards will want to push for policies that ensure AI benefits everyone, not just the few.

By doing so, they not only protect the organisation’s values but help shape a more just and responsible digital future.

Mending and preventing workplace fractures

Relationships remain the glue of any organisation, but they can also be fragile.

Breakdowns in trust—between board and C-suite, or between leaders and teams—can derail even the best strategies. These relational ‘fractures’ often come from unmet expectations, or unclear obligations.

When trust erodes, so does collaboration. Frustration builds, people disengage and performance suffers. Research shows that the damage from broken psychological contracts—what people believe has been promised to them at work—can outweigh the benefits of when those contracts are honoured.

AI introduces a new layer of complexity. It’s not just about human-to-human relationships anymore; AI is now part of the workplace dynamic.

While we don’t yet fully understand how human-AI relationships fracture, we know it’s coming. Boards will need to anticipate these pressure points and develop strategies to manage them before they can hurt culture and cohesion.

Are boards ready for what’s next?

Generative AI isn’t just another tech shift. It’s a game-changer. Boards must lead with both clarity and conscience. This means embracing innovation, while also ensuring ethics and human values are never sidelined.

This new era calls for transparency, transferable skills and a firm commitment to integrity. Boards must create a space where humans and machines can work together, and where people feel equipped, not replaced.

So here’s the question: Are today’s boards ready to lead in this new reality? The answer will shape not only the future of their organisations, but society at large.

Andrew Kakabadse is professor of governance and leadership, and Nada Kakabadse is professor of policy, governance and ethics, both at Henley Business School.

  • Facebook
  • Twitter
  • Google+
  • LinkedIn
  • Mail

Related Posts

  • AI is about governance, not tech
    January 30, 2024
    ai governance

    The potential of artificial intelligence is huge, as are the pitfalls. Here’s how to get to grips with the governance required.

  • AI tops list of workplace concerns
    March 17, 2025
    AI concerns

    Employees fear misuse of artificial intelligence or losing their jobs to automation or AI, finds Institute of Business Ethics poll.

  • AI governance services set to rocket
    June 9, 2025
    ai governance

    Businesses are rushing to adopt artificial intelligence, in spite of ‘limited understanding’ of the governance risks entailed.

  • Boards urged to establish an ethical culture
    October 3, 2023
    ethical culture

    The Institute of Business Ethics is sending a clear message to the many FTSE 350 companies that lack an accessible ethics code.

Search


Follow Us

Most Popular

Featured Resources

The Future of FTSE 350 Chairs: Pathways, Pipelines & Barriers 2026

This report is a collaboration between the FTSE Women Leaders Review and Professor...

Agentic AI from principles to practice 

‘A C-suite guide to capturing value without losing control’, this Forvis Mazars...

Route to the Top: Europe 2026 

This survey report from Heidrick & Struggles finds that companies are tending...
board's role in a rewired world fgs 2026 cover

A hard job getting harder: The board's role in a rewired world

The role of a corporate director is demanding intellectually, ethically and strategically—and...

Boardroom resilience: Practical governance for risk, readiness and rapid response

Boards are operating in a world defined by uncertainty. Geopolitical tensions, climate...

Board Value Index Summer 2026

Board Intelligence found 86% of directors say rigid processes and inconsistent frameworks...

Governance Guide: Navigating Conflict in the Boardroom

The 'Governance Guide' on navigating conflict in the boardroom provides practical...

Becoming a non-executive director (4th edition)

Board composition is the subject of much debate, while the role of the non-executive...

SUBSCRIBE TODAY

Stay current with a wide-ranging source of governance news and intelligence and apply the latest thinking to your boardroom challenges. Subscribe


  • Editors & Contributors
  • Editorial Advisory Board
  • Board Advisory & Corporate Services
  • Media Marketing Solutions
  • Contact Us
  • About Us
  • Board Director Network
  • Terms & Conditions
  • Privacy Policy
  • Cookies

Copyright © 2026 Questor Media Group Ltd.

  • Terms & Conditions
  • Privacy Policy