Adapt or Perish – the technology challenge for boards

These are key takeaways from this webinar with David W Duffy and Bob Semple about a survey we recently conducted, Technology in the Boardroom. The full survey report will be available soon.

• If you’re a director you need to be thinking about the board in terms of technology.
• In the last 50 years, the speed of technological change and advancements has accelerated. But is this advancement in technology being harnessed in the boardroom?
• Covid accelerated the use of some technology in the boardroom but overall its introduction has been relatively slow.
• Boards are not really using technology as a productivity tool instead where it’s being used, the focus is tech as a communication tool. 
• There is a great deal of director discomfort around the use of technology in the board.
• The use of technology in the boardroom is considered an aside rather than being part of the main conversation at every board meeting.

About the survey – Technology in the Boardroom

• CGI partnered with Board Intelligence to carry out the survey..
• The survey was directed at active directors who are currently serving on a board.
• We received hundreds of responses from a wide range of companies of varying sizes.
• A number of first-time directors responded.
• There was a good mix of NEDs and chairs.

Ways technology can be used in the boardroom

• Video conferencing, collaboration and sentiment analysis tools.

• Collaboration tools:
  • Allow for anonymous opinions to be expressed meaning the focus is on what is being said, rather than who is saying it.
  • Are useful for levelling out bias in thinking.
  • Captures divergent thinking and convergent thinking to see where commonalities appear. 

Highlights of the survey

• Over 60% of respondents use a board portal.
• Only half of the respondents thought their information was secure. The security around information is challenging. Directors need to understand the impact of information getting into the public domain.
• Over 35% of respondents say they use video and conferencing technology tools but little else.
• Other technology tools that are moderately popular include data and analytics tools such as CGIAR visualisation tool. 
• Males were more interested in data analysis than females. Females have a greater ability to collaborate naturally.
• Data analysis and sentiment analysis tools didn’t feature as tools of much interest. This is a worrying feature.

Thoughts on AI in the boardroom

• AI is a game-changer. It will change our world in the next few years. 
• The productivity savings are 30-60%.
• The impact of AI on boards is profound. If you ignore it you will fall seriously behind.

Concerns for AI in the boardroom 

• Knowing how to verify the information you receive from AI.
• The implications of AI on your business model.
• The liability issues for directors who don’t address the use of AI in the boardroom.
• The intellectual property of the information you get from AI.
• Privacy issues.

Advice for directors on how to educate themselves

• Start experimenting with technology you could use in the boardroom.
• Get experts in to talk about using technology in the boardroom and ask: How can it help the organisation? How can it help productivity?
• When succession planning, consider the technological expertise of potential new members. 
• Continuous director education needs to be top of the agenda for everyone.

Further research and recommended readings:

• https://www.cgiar.org/funders/trust-fund/trust-fund-contributions-dashboard/
• https://www.meetingquality.com/
• https://www.xleap.net/solution
• Ben’s Bites newsletter
• Scary Smart by Mo Gawdat
• The Coming Wave by Mustafa Suleyman

The full survey report will be available soon.

The webinar will present some of the key findings from a survey completed by Chairs, NEDs and Executive Directors on “Technology in the Boardroom” carried out jointly with Board Intelligence in London.  The report will be launched in September 2023.

This webinar will be presented by Bob Semple FCA and a member of The Corporate Governance Institutes Governance Advisory Council.  It will be hosted by David W Duffy, the co-founder and CEO of the Institute.

Some findings from respondents:

• 82% agree that they should be making greater use of technology to enhance board performance
• 71% agree new board candidates should have to demonstrate technology competence
• 90% want more training to make effective use of the board’s chosen technology tools, and help them oversee use of technology in the organisation

The webinar will explore the findings and impact of the following for example:

• AI in the Boardroom – “GPT4 beats 90% of lawyers trying to pass the Bar”!
• Directors and Board who do not keep pace with technology
• Corporate Governance

Your key takeaways will be:

• What steps should be taken by my board to understand and take advantage of AI?
• What skills will I need as a director to survive and thrive in the tech savvy boardrooms of the future?
• How will technology impact the governance of organisations going forward?

Bob Semple is a Chartered Director, Chartered Accountant and experienced Director, with over 45 years’ business experience. A former PwC partner, he now works as an independent consultant specialising in board effectiveness reviews and risk management. He is a member of the Governance Advisory Council of the Corporate Governance Institute.

David W Duffy is the CEO and Founder of The Corporate Governance Institute. His mission is to make corporate governance, engaging, stimulating and relevant globally by bringing relentless innovation to how adults learn. Through his foresight he has enabled people from over 50 countries to learn about corporate governance online when and where it suits them. He has substantial experience in advising on all aspects of corporate governance has completed over 200 reviews governance assignments. He has authored the following books based on his consulting and practical experience as a board member; – A Practical Guide to Corporate Governance – published by Chartered Accountants Ireland. – A Practical Guide for Company Directors – published by Chartered Accountants Ireland