Bridging the AI Knowledge Gap: A Strategic Imperative for Boards and Executives

As you finalize plans for 2025, a recent Deloitte study revealed a concerning gap: nearly 80% of board members and C-suite executives report their boards have limited to no knowledge or experience with Artificial Intelligence (AI). This presents a significant challenge because boards are responsible for steering the organization’s strategic direction, overseeing high-level issues, and ensuring long-term sustainability. Without sufficient understanding of AI, boards may undervalue its importance, reducing funding and slowing adoption—putting your organization at a competitive disadvantage.

To assist your board in becoming more AI literate and fully grasp the urgency of integrating AI into corporate strategy, it's helpful to take a step back and consider how transformative shifts have historically redefined industries and societies.

Throughout history, each major revolution has reshaped the fabric of business, consumer behavior, and society. The Agrarian Revolution transitioned us to agricultural societies, the Industrial Revolution brought mass production and urbanization, the Digital Revolution reshaped communication, and the Information Revolution shifted our focus to data and knowledge.

Now, we stand at the brink of the Intelligence Revolution, where AI is set to become the cornerstone of business transformation. AI will deeply impact business operations, reshaping how companies engage with customers, from personalized marketing and predictive sales strategies to efficient customer service. For consumers, AI promises more intuitive interactions, with AI agents and bots acting on their behalf, necessitating businesses to adapt to these evolving expectations. 

Put simply, the success of businesses depends on their ability to access, synthesize, and leverage Intelligence effectively to achieve growth and market transformation.

AI is no different from other transformative tools in history—it is most impactful when approached with clarity, preparation, and purpose. 

To guide your board, we propose a simple yet powerful framework - Envision, Empower, Excel - to provide valuable insights and foster collaboration with your board:

Envision: Articulate a Clear AI Vision and Set Strategic Objectives

Strategic Alignment: Develop and present a compelling AI-integrated business model that identifies where AI can deliver the greatest impact—whether through operational efficiency, enhanced customer experiences, or innovative products. Prepare analyses and proposals to lead discussions with the board, highlighting potential benefits and competitive advantages.

Market Positioning: Frame AI as a strategic differentiator that will position the company ahead of competitors. Help the board see how AI can unlock new growth opportunities and create value.

Executive Action Point:
"I will propose regular AI updates as a standing agenda item in board meetings to keep the board informed about AI initiatives, progress, and challenges."

Empower: Provide Resources and Foster a Culture of Innovation

Upskilling and Resources: Launch targeted training programs to build AI proficiency across all levels, including the board. Organize workshops, invite board members to strategic AI discussions, or establish AI centers of excellence to enhance cross-functional alignment.

Cultural Transformation: Lead by example in fostering an innovation-driven culture. Encourage experimentation, adaptability, and a growth mindset within the organization and among board members.

Executive Action Point:
"I will propose forming an AI subcommittee of the board to ensure the board is aligned on opportunities, challenges, and governance, while keeping our strategy on track."

Excel: Drive Implementation Collaboratively

Pilot Initiatives: Launch high-impact, low-complexity AI projects to deliver quick wins and demonstrate value. Use these pilots to build momentum and validate the strategic vision.

Performance Tracking: Define and implement clear KPIs to measure progress and ROI. Provide dashboards and reports to maintain transparency and facilitate informed decision-making.

Executive Action Point:
"I will assign AI mentors from within the company to work with board members, to enhance their understanding of AI’s impact on the business and deepen their engagement.”

The Risk of Inaction

Without proactive leadership and collaboration between the C-suite and the board, organizations risk:

Fragmented Initiatives: Disconnected projects that consume resources without delivering value.

Competitive Disadvantage: Falling behind as competitors leverage AI to innovate and optimize.

Missed Opportunities: Inability to meet evolving customer expectations and market demands.

Your Leadership is Critical

To succeed with AI, it’s essential to have a unified strategy that brings together vision, empowerment, and execution. By leading the charge and guiding your board, you position your organization to stay ahead of the curve.

We recommend starting with an Executive and Board AI Alignment Initiative, which includes:

• AI Education Sessions: Workshops or briefings to enhance the board’s understanding of AI’s strategic implications.

• Strategic AI Roadmap Development: A collaborative plan aligned with your business goals.

• Governance Frameworks: Establishing structures for ethical oversight and informed decision-making.

This proactive approach isn’t just about staying competitive—it’s about ensuring your organization and board are united in leading the AI-driven future.

Let’s embark on this journey together.

The AI Outcome delivers strategic insights for business, strategy, and marketing leaders in concise reflections designed to inspire action and provoke thought as well as deep-dive, long-form perspectives that uncover opportunities for growth, innovation, and market leadership.

AI is rapidly creating the emergence of leaders and laggards. Let The AI Outcome be your guide to driving growth and transforming markets with AI.