The Convergence Imperative: 

1. AI Policy Pulse – Oversight, Risk & Federal Shifts

Directors noted that federal AI policy continues to shift rapidly—from Biden’s executive order to Trump’s EO 14179 and now a forthcoming AI Action Plan. The message: boards can’t chase political swings; governance discipline must remain constant.

Participants flagged fragmented regulation—state-by-state differences layered with EU privacy rules—as a major compliance challenge. Many called for clarity around which committee (Audit, Risk, or full board) owns AI oversight.

The group emphasized self-regulation and forward-looking governance, encouraging companies to adopt frameworks such as NIST’s AI RMF, pursue continuous education, and consider adding digital-native directors to raise the level of dialogue.

Catalyst insight: “We don’t want to change every four years—companies need to stick with governance discipline over the long term.”

Questions for Boards:

• Does our board have sufficient AI literacy to probe second-order risks?

• Is our governance structure clear and effective for AI oversight?

Questions for Management:

• What guardrails govern our AI tools across jurisdictions?

• Are we stress-testing our models and data governance through “red-team” exercises?

2. AI in the Boardroom – Practical Applications

AI for Minutes

Opinions diverged sharply. Some directors saw AI-drafted minutes as a legal and confidentiality risk; others viewed limited pilots as potential time-savers for corporate secretaries. The consensus: tone, nuance, and human judgment remain irreplaceable.

Catalyst insight: “Minutes are an art—tone and nuance can’t be machine-written.”

AI for Crisis Simulation

This was the most enthusiastically endorsed use case. Directors saw clear value in AI-driven crisis drills that adapt scenarios in real time to strengthen preparedness. Still, they cautioned against over-reliance—AI can’t replicate human emotion or instinct under pressure.

Catalyst insight: “Crisis simulations are a no-brainer—already in use at leading hospitals, and boards need the same preparedness.”

AI for Strategy Exploration

Boards discussed using AI to scan markets, model disruption, and challenge assumptions—but warned that too much data could overwhelm strategy or lead directors into operational micromanagement.

Catalyst insight: “AI can broaden horizons, but it can’t decide where scarce resources go—that remains a board’s job.”

3. Cross-Cutting Insights

Across all discussions, one theme prevailed: AI requires human oversight. Directors reaffirmed that judgment, accountability, and fiduciary duty cannot be automated.

They also called on NACD to serve as a bridge—translating policy shifts, curating best practices, and developing playbooks that help boards learn, test, and scale AI responsibly.

Key Board Questions:

• How can we raise our collective AI literacy in the next 12 months?

• What is management’s roadmap for responsible AI adoption, and where should the board engage first?

Insights from Microsoft’s Envisioning Theater

Presented by Paul Edlund, Microsoft

Microsoft’s Paul Edlund used vivid analogies to bring governance issues to life:

• Workforce & Technology – “New Tools on the Jobsite”

  AI tools democratize innovation but create new risks when untrained employees act without oversight. Boards must ensure training and safeguards keep pace.

• AI Agent Sprawl – “A Neighborhood Without a Planner”

  Without standards such as the Model Context Protocol (MCP), AI agents can proliferate without control, creating security and compliance blind spots.

• Deployment & Adoption – “Building the Foundation Before the Floors”

  Directors were reminded that early investments in AI infrastructure—governance, cybersecurity, and culture—form the foundation for sustainable adoption.

Key Takeaway for Directors

AI oversight isn’t about chasing shiny demos—it’s about governance, discipline, and foresight. Boards that invest in education, structure, and pacing will help their organizations build something lasting—just like a well-designed building that stands the test of time.

Program Handouts

Protiviti & Morningstar Slides  Click to Download

Accenture slides Click to Download