Corporate governance is entering a new chapter: artificial intelligence (AI) is starting to play a role in analysing information and making decisions, its influence reaching the highest levels of leadership. But the big question is: does AI belong in the boardroom?

A special panel discussion in Dubai, organised by Nasdaq, for which Board Agenda was a media partner, heard strong views that AI will become a powerful tool for improving governance, while others raised questions about accountability, transparency and trust.

Despite differences, the panel acknowledged that AI will, sooner or later, be part of corporate governance. The real challenge is not whether AI will be involved, but how organisations choose to work with it.

Knowledge is the key to AI governance

James Beasley, head of management consulting for Europe, the Middle East, and Africa at Nasdaq, believes AI is becoming necessary and inevitable. But, he said, it must be based on practical standards and principles. This will allow boards to benefit from AI as much as possible in corporate governance, while avoiding some of the risks that might arise in decision-making or in carrying out the board’s core tasks.

“The direction we’re ultimately going to have to go in is to utilise AI in the boardroom in a way that really contributes to decision-making,” Beasley said. “We talked about the concept of an AI board member. It’s important because […] it’s here to stay, and it’s only going to continue to become more sophisticated and more impactful.”

The discussion explored how, as AI adoption speeds up, traditional governance structures are tested. The technology has the potential to influence how decisions are made, the way risks are assessed, and how accountability is enforced. Boards must rethink their oversight roles and governance frameworks.

For board members, the panel heard, the challenge will be integrating AI into governance in a way that improves decision-making without undermining the principles of transparency, accountability and trust at the heart of effective governance.

These issues will be widespread. Corporate governance is now essential for all types of companies—publicly listed and family firms—aiming to achieve sustainable growth. It will touch on balancing the interests of owners, management, employees and shareholders across all corporate forms.

Beasley added: “All organisations are, and indeed must, explore how to best utilise and implement these technologies. Therefore, it is perfectly natural to consider how the board of directors (which leads an organisation and oversees its performance), risk levels, and overall sustainability, can benefit from these technologies.”

Boardroom use of AI is available for both directors and company secretaries, said Beasley, and will require the development of skills and knowledge to optimise the application of AI, depending on the specific role.

Nasdaq’s own applications are helping board directors take deeper dives into information in a way that plays to boardroom curiosity. For company secretaries, AI is saving time and increasing efficiency on many aspects of their work.

“We’re already seeing a tremendous amount of value coming from using AI as part of corporate governance processes,” said Beasley.

Promising opportunities in AI governance

With the development of laws backing corporate governance in the Middle East and Africa, governance is inevitably applied to both public companies and family businesses. These diverse companies are undergoing noticeable transformation, with governance influencing their sustainable growth and helping create opportunities in the region.

Michael Bartels, SVP, head of workflow & insights at Nasdaq, sees a lot of potential in the Middle East, particularly the UAE. “The investment growth in the region is clear,” he said.

And this growth is prompting a serious look at governance. “As the region matures from a regulatory standpoint, you can see conversations about governance and its emerging nature,” he said. “The increasing importance of governance extends not just to publicly listed companies, but also to private and government-backed organisations.”

Bartels emphasised that AI use in corporate governance relies on the cognitive and technical abilities of board members. “If board members lack the skills, experience, or technical knowledge to work with it, it creates challenges.

“To summarise, there’s the individual journey for each board member to become more fluent in AI, and then there’s the board-level consideration of the appropriate amount of oversight and what that should look like.”

Don’t forget… AI is a tool

Maali Khader, CEO of the Middle East Institute of Directors, said that AI struggles to be accountable, transparent or fair in its own right, because it is a binary system and a data processor.

While AI is a powerful tool that can assist directors in fulfilling their responsibilities, it can only perform checks and balances based on the information it receives. Khader argued AI depends on inputs: the better the quality of inputs, the better the quality of outputs.

“AI will enter the boardroom in some form, so we need to be ready,” she said. “Governance is built on principles like accountability, fairness, transparency and responsibility. AI can support governance as a tool for checks and balances or to assist in decision-making and discussions in the boardroom.”

As Nasdaq’s Dubai event made clear, AI’s presence in Middle Eastern boardrooms is no longer speculative—it’s happening. The question facing directors globally is how to shape this new technology into a force that enables, rather than undermines, effective governance.

Future of the Boardroom: UAE Leadership Circle took place at the EDITION, in Dubai on 29th January and was hosted by Nasdaq Governance Solutions.