Skip to content

18 November, 2025

  • 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
    • directors duties

      3 top tips on directors’ duties

      When directors fall short of their responsibilities, the consequences can be devastating. How can board...

    • CFO

      How to build trust between the CFO and the board

      The chief financial officer’s relationship with the board is critical and requires work on both...

    • permacrisis

      How to lead through permacrisis

      In an era of constant disruption, leaders must rethink culture and embrace empathy, purpose and...

  • Comment
      • View all
    • directors duties

      3 top tips on directors’ duties

      When directors fall short of their responsibilities, the consequences can be devastating. How can board...

    • permacrisis How to lead through permacrisis

      In an era of constant disruption, leaders must rethink culture and embrace empathy, purpose and...

    • polycrisis Business must adapt to survive the polycrisis

      The risk landscape is changing drastically, and it is only through investing in a new...

  • Interviews
      • View All Interviews
      • Podcasts
      • Webinars
    • Evangelos Mytilineos Metlen Metlen: a governance journey from Athens to London

      The energy and metals multinational joined the FTSE 100 this summer, well prepared to adopt...

    • ai C-suite challenges can need ‘substantive input’ from board

      Challenges such as the introduction of artificial intelligence should be strategic issues for the board,...

    • volatile times Boards look to short-term development to find stability in volatile times

      Nimble business, diversification to make supply chains less fragile and shorter timeframes are key moves,...

  • Board Careers
  • Resource Centre
      • White Paper Downloads
      • Book Reviews
      • Board Advisory & Corporate Services
    • Reimagining the Way the World Works 2025

      Forum for the Future sustainability report, showcasing examples of organisations or communities that are reimagining...

    • UN SDG Trailblazers cover

      Trailblazers & Transformers:  UK business sectors redefining sustainability 2025

      This UN Global Compact report examines six sectors that will shape the UK’s progress on...

    • KPMG 2025 Global CEO Outlook

      The KPMG CEO Outlook, conducted with 1,350 CEOs in Aug/Sept 2025, provides insight into the...

  • 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

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 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.

  • 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.

Search


Follow Us

Most Popular

Featured Resources

wef global risks 2025

The Global Risks Report 2025

The 20th edition of the Global Risks Report reveals an increasingly fractured global...
Supply chain management cover

Strategic Oversight in Supply Chain Management: A Guide for Corporate Boards 2025

Supply chains have become complex, interdependent and opaque and—according to research...
OB-Cyber-Security

Cyber Security: What Boards Need to Know

Maintaining firewalls, protecting servers and filtering malicious emails rarely make...

The IA’S Principles Of Remuneration 2024 2025

This guidance from the Investment Association is aimed at assisting remuneration...
Diligent 2024 leadership tech cover

Leadership, decision-making & the role of technology: Business survey 2024

This research report by Board Agenda and Diligent sheds light on how board directors...

Director Reference Guide: Navigating Conflict in the Boardroom

The 'Director Reference Guide' on navigating conflict in the boardroom provides practical...
Nasdaq 2024 governance report cover

Nasdaq 2024 Global Governance Pulse

This Nasdaq survey gathered data from more than 870 board members, executives, and...

Becoming a non-executive director (4th edition)

Board composition is the subject of much debate, while the role of the non-executive...
art & science brainloop new cover

The Art & Science of Creating an Effective Board

Boards are coming under more scrutiny and pressure than ever before from regulators,...
SAA First time NED guide

First Time Guide for Non-Executive Directors

The role of the non-executive director has never been more vital: to advise, support,...

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 © 2025 Questor Media Group Ltd.

  • Terms & Conditions
  • Privacy Policy
  • Sitemap