Posts tagged with #board-advisory address the unique board-level challenges of governing AI decisions that occur at machine speed while ensuring accountability and transparency.
Organisations are demanding disciplined, comprehensive business cases for AI initiatives that balance traditional financial rigour with frameworks capturing AI’s unique value creation patterns. In this fourth article in my series on AI business cases, I provide a step-by-step guide to building AI business cases that secure approval and set the foundation for successful implementation.
Finding high-value AI opportunities requires looking beyond the obvious. While most organisations gravitate toward trendy applications like chatbots, the most impactful AI initiatives often lie in less visible but more strategically significant processes. By applying a structured evaluation approach that examines process characteristics, strategic alignment, and implementation feasibility, boards can identify AI investments that deliver transformative value across multiple business dimensions. This systematic method ensures scarce resources target opportunities with the greatest potential impact rather than those with merely the highest visibility or short-term appeal.
Building on my previous thoughts about why traditional business cases fail for AI investments, this article explores what I consider to be the essential building blocks for a more effective evaluation approach. This foundation provides boards with the tools to assess AI’s unique value creation patterns while maintaining financial discipline - helping leaders confidently navigate investment decisions that conventional models simply cannot adequately evaluate.
In my article The Board in the machine, I argued that “Boards will find that there are no barriers to making the right decisions at the speed of light”. More recently, in AI is transforming governance: Six key Boardroom priorities, I observed that boards “are moving from overseeing hundreds of decisions made per day to millions made per second”. This acceleration of business decision velocity presents both an unprecedented challenge and opportunity for Directors and the Boards they serve.
The EU AI Act, which came into force on August 1, 2024, establishes significant penalties for non-compliance, including fines of up to €35 million or 7% of global annual turnover for serious violations. As regulatory frameworks for artificial intelligence rapidly evolve worldwide, Boards face a new imperative: navigating complex compliance requirements while maintaining the innovation speed necessary to compete.
While here in San Francisco for a business trip, I got the opportunity to spend time with technology innovators and leaders, and what struck me was the contrast in AI adoption approaches, and openness to transformation using AI compared to my experiences in Europe. A new benchmark report from Gallup has confirmed what many of us in technology leadership have long suspected: Europe’s lag in AI adoption isn’t a matter of insufficient capital – it’s a cultural challenge that runs deep.
I recently hosted a fireside chat for the AWS Summit EMEA with Intel’s Global Leader for AI Solutions, Monica Livingston. We discussed how Artificial Intelligence (AI) and Machine Learning (ML) are quickly becoming ubiquitous in business. The conversation prompted me to think about how Boards should be thinking about the use of AI and ML in their businesses, and how they need to ensure they are making the right decisions at the speed of light.