Survey Analysis: AI

Discover findings from NACD’s 2025 Public Company Board Practices and Oversight Survey related to the board’s oversight of artificial intelligence (AI) technologies at their organizations. The data was gathered from directors and others who serve the boards of publicly traded companies. Access the full survey here.

Key Insights: Board Focus Improves While Governance Practices Lag

Boards are dedicating an increasing amount of time and attention to AI, with more than 62 percent of director respondents stating they now set aside agenda time for full-board AI discussions. This is a significant increase in the level of engagement compared to a 2023 survey which showed only 28 percent of boards regularly held conversations related to AI. Most boards are also making key inquiries of management concerning AI technologies, including requesting updates on the organization’s data governance practices (53%) or information about how AI could affect future workforce needs (53%). While increased board engagement with AI is an encouraging sign, the data still reveal areas for boards’ improvement when evaluating AI’s impacts on corporate strategy and integrating AI governance into board operations.

Just under a quarter of respondents indicate they have reevaluated corporate strategies to incorporate AI’s impact (23%) and/or conducted an audit to determine where AI is currently in use within their company (23%). Further, 36 percent of respondents stated their boards adopted an AI governance framework, with only 9 and 6 percent of respondents approving an annual budget for AI projects or establishing AI metrics for management reporting, respectively.

AI oversight activities performed by boards
(Respondents could select all that apply.) 

Overall, the data suggest that boards now stand at the inflection point of transitioning from AI education and awareness to more strategic and integrated AI governance within board operations.

Why It Matters

Boards are under pressure, both internally and externally, to engage more deeply and strategically in the governance of AI. Almost three years after the public release of ChatGPT, AI continues to embed itself broadly throughout the economy. One global survey indicates that 78 percent (McKinsey) of companies are using AI in at least one of their business functions, implying that most directors oversee a company where AI is already deployed and in use. Additionally, investors are pushing boards to formalize AI oversight as a part of their operations to ensure adequate oversight. The 2024-2025 proxy season also saw multiple AI-related shareholder proposals on societal risks including AI’s impacts on the workforce. These proposals requested information about the impacts from AI automation on the workforce and that AI oversight be incorporated into a board’s audit committee charter.

What Boards Should Do

As AI further embeds itself into corporate operations and strategy and it becomes a more significant strategic enabler and risk factor, boards will need to orient their processes, agendas, and continuing education toward maintaining consistent oversight of the technology. For example, boards could consider if and how committee charters should be revised to strengthen the board’s oversight by assigning responsibility for oversight of issues critical to AI’s success, like human capital, data governance, cybersecurity, and regulatory issues. Currently, only 27 percent of respondent boards have incorporated AI governance into committee charters. Engaging in strategic AI discussions can help boards to overcome the lack of a clear return on investment surrounding many AI investments, a barrier identified by 31 percent of respondents. Through focused, strategic discussions identifying where AI investments, use cases, or tools are likely to create value and establishing appropriate progress metrics for management reporting, board can develop a shared understanding of AI’s value and risks that can help overcome barriers to successful AI adoption throughout the organization.

Biggest barriers to AI adoption/implementation/deployment

Q: Which of the following do you believe is the biggest barrier to AI adoption/implementation/deployment at your organization?
2025 NACD Public Company Board Practices and Oversight Survey, n=156

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