Should AI have a seat at the board table?
Do boards need competence on AI?
Or perhaps the entire board could simply be replaced by AI, then one could simply get rid of all those pesky non-executive board directors.
We talked about the importance of data-driven decision-making 20 years ago. Now, under the paradigm of AI, it's like data-driven decision-making is a completely novel idea. The magic feel of AI seems to lead very experienced people into thinking that this is something divinely different. It's not. AI is mathematics and software, albeit potentially extremely powerful.
In this article, I will summarise findings from three studies performed by MIT Center for Information Systems Research (CISR) and Wharton/INSEAD, respectively. First, though, I have a couple of questions for you.
Leaders and tools: not one without the other
Most companies have a CFO. CFOs usually depend on spreadsheets on a daily basis. My questions are:
How comfortable would you be with replacing your human CFO with an automated spreadsheet?
What if we take away the spreadsheets from your CFO (and their team), would their performance still be according to your expectations?
I expect your answers to be that 1) replacing a senior experienced leader with automated spreadsheets would be a massive risk and loss of competence and knowledge, and 2) not providing essential tools would pose a significant handicap. This is how you should think about your non-executive board and AI. Your company needs highly competent human leaders, supported by the best possible tools. Not the other way around.
The challenge most companies face is that not all the non-executive board directors around the table have the competencies and capabilities that the company needs. However, the solution is not to use AI as a band aid. The solution is to re-think which competencies and capabilities are needed on the board, recruit board members based on what the company needs (not who you know), and provide the right tools, including AI tools, to enable faster and better information processing and data-driven decision-making.
So what do the aforementioned academic institutions have to say about this topic?
What Academic Research Tells Us About Boards and AI
MIT CISC first did a study published in 2019 on the importance of digital competence on the board. They found that for the board to be digitally savvy as an entity, critical mass was three board members with digital competence. At the time of the study, only 24% of the boards of companies with over USD 1 bn revenue listed on NYSE and Nasdaq were digitally savvy. These digitally savvy companies had 38% higher revenue growth, 34% higher ROA, and 34% higher market cap growth than the rest.
In 2024, MIT CISC redid the study, this time including AI. They found 26% of the boards in the study to be digitally and AI savvy, again consistently outperforming their peers. One very interesting finding was that in 2024, being a digitally savvy board by the 2019 study standards had become a minimum requirement, but was no longer a financial differentiator.
In the Wharton/INSEAD study, they designed an experiment to compare AI boards and human boards. The fundamental premise was that non-executive board members are extremely busy part-timers who typically struggle to fully digest the provided information, connect the right dots in efficient ways, and keep up the pace with the complexity and development of the business. The summary of the study was that the AI board was more structurally disciplined, better at involving all members in the discourse, less vulnerable to distractions when faced with unfamiliar issues, and better at learning from each other through the process.
From these studies, I want to highlight the following three key learnings:
A digitally+AI savvy board gives the company a financial advantage. Establish minimum critical mass of three AI/digitally savvy boards directors.
Implement annual board-wide technology education with external exposure, including cybersecurity and digital business model disruption. Keep in mind that the competence which was a competitive advantage five years ago may be a mainstream hygiene factor tomorrow.
Machines (aka AI) are in general better than humans at processing large amounts of information and use this information to come to logical and fact-based arguments and conclusions. Therefore, deploy appropriate AI and advanced analytics tools for boardwork.
Boards in 2026: higher demands and clear expectations
Does this mean that human board members should be replaced by AI? No, not even close. The Wharton/INSEAD simulation is way too simplistic to offer any robust recommendations. One such issue which was completely omitted was the risk of cyber-attacks against, through, and by the AI board members. This massive set of risks should in itself prevent any board from employing an AI as board member. However, what all three of these studies demonstrate, is that data-driven decision-making enabled by and supported by modern technologies is a key factor for financial and competitive advantage.
However, it is a strong reminder that being a board member in 2026 and forward is a demanding position with clear competence and performance requirements. Board candidates, if you want a seat around the board table, skill up. What was good enough last year will not be good enough tomorrow.
These are the questions I work with as a speaker and board advisor: what competence boards need, what risks they must govern, and how technology should support human judgment. If this is on your agenda, I would welcome a conversation.
About the Author
Elin Hauge is a business and data strategist, pragmatic futurist, and eternal rebel. With a unique background spanning physics, mathematics, business, and law, she brings fresh and thought-provoking insights into artificial intelligence and other data-driven technologies. Her work connects today’s realities with tomorrow’s possibilities, focusing on demystifying AI, harnessing data power, managing algorithmic risk, and guiding leaders through digital transformation.
References
Weill, P., Woerner, S., Banner, K. (2019).
Digitally Savvy Boards: Why Boards Need Digital Competence.
MIT Sloan Center for Information Systems Research (CISR).
https://cisr.mit.edu/publication/2019_0101_DigitallySavvyBoards_WeillWoernerApelBannerWeill, P., Woerner, S., Banner, K., Moore, J. (2025).
Savvy Boards Update: Digital and AI Savviness as a Board Requirement.
MIT Sloan Center for Information Systems Research (CISR).
https://cisr.mit.edu/publication/2025_0301_SavvyBoardsUpdate_WeillWoernerBannerMooreYakubovich, V., Shekshnia, S., Yashneva, E., Sullivan, K. (2025).
Can AI Boards Outperform Human Ones?
Harvard Business Review (Wharton / INSEAD).
https://hbr.org/2025/11/can-ai-boards-outperform-human-ones