The rapid integration of artificial intelligence (AI) into corporate governance is outpacing the development of clear organizational policies, leaving a significant portion of board directors operating without defined guidance. A recent survey conducted by Corporate Board Member in collaboration with the Diligent Institute reveals a striking disconnect between the increasing adoption of generative AI tools by directors and the establishment of formal company oversight.
The survey, which polled 104 public company directors, found that an overwhelming 82% have utilized generative AI in their board-related activities within the past six months. This figure represents a substantial increase from 66% reported in September 2025, indicating an accelerated trend in AI adoption at the highest levels of corporate decision-making. However, this surge in usage is not being met with commensurate policy development. More than half of the surveyed directors (54%) reported a lack of any company guidance specifically for directors’ use of AI. Compounding this, only a meager 6% of respondents indicated the existence of a formal policy dedicated to board AI usage.
This absence of clear directives raises significant concerns regarding data security, ethical considerations, and the potential for unintentional disclosure of sensitive information. Directors are increasingly leveraging AI for tasks that involve highly confidential materials. Approximately 30% of directors have employed generative AI to summarize board books or meeting materials – documents that frequently contain proprietary financial data, strategic plans, and personnel information. Furthermore, nearly half of the directors (45%) have used AI to prepare for board or committee discussions or to benchmark peers, competitors, and market trends, activities that require access to competitive intelligence and strategic insights.
A particularly concerning finding is the prevalence of directors using publicly available or consumer-facing AI tools for board work. Nearly half of the directors (49%) acknowledged awareness of board members employing such tools, as opposed to company-sanctioned and secured systems. This practice significantly amplifies the risk of sensitive data being processed by third-party AI platforms without adequate security protocols or contractual assurances. While the survey also indicated that almost all respondents (96%) were unaware of any instances where board materials had been entered into a tool outside of an approved environment, the mere awareness of such practices among a substantial segment of directors suggests a latent risk. The implications of using unvetted AI tools could range from data breaches and intellectual property theft to reputational damage and regulatory scrutiny.
The survey also highlighted a discernible difference in perspective between directors serving on risk committees and those who do not. A substantial majority, 79% of risk committee directors, perceive generative AI as instigating moderate to severe measurable change within their organizations. This contrasts with 54% of directors not serving on risk committees who share the same view. This disparity underscores the heightened awareness among those directly tasked with identifying and mitigating organizational risks.
Looking ahead, nearly two-thirds (63%) of risk committee members anticipate that AI will have the greatest impact on boardroom discussions over the next year, particularly in the domains of risk and compliance. This forward-looking sentiment is significantly stronger than among directors not on risk committees, where only 31% foresee a similar level of impact. This divergence suggests that risk committees are proactively engaging with the disruptive potential of AI and are anticipating its integration into strategic risk management frameworks. The proactive stance of risk committees, coupled with the general lack of specific AI guidance for directors, creates a critical governance gap that requires immediate attention from corporate leadership and boards themselves.
EHS Professionals Report Growing Influence Amidst Evolving Challenges
In parallel to the governance discussions around AI, environmental, health, and safety (EHS) professionals are also experiencing a significant shift in their organizational standing and perceived value. A recent survey conducted by software company VelocityEHS reveals that the EHS function is increasingly recognized as a strategic business driver, moving beyond its traditional role as a mere compliance function.
The VelocityEHS survey, which gathered responses from 1,008 EHS professionals across a diverse range of industries, indicates a widespread sentiment of growing influence at the executive level. A notable 82% of EHS professionals believe their function is gaining traction and importance within their organizations. This perception is further validated by three-fourths of respondents who report a discernible shift towards more strategic attitudes toward EHS from executive leadership over the past 24 months. Furthermore, approximately two-thirds (67%) of EHS professionals indicated that their function has been successfully integrated into broader enterprise risk management and strategic business discussions.
This enhanced acceptance and integration of EHS into core business strategies represent a positive evolution, acknowledging the critical role EHS plays in sustainability, operational resilience, and corporate reputation. However, the growing influence does not signify an absence of persistent challenges. The survey also sheds light on ongoing obstacles that continue to test the capabilities of EHS departments.
A significant concern highlighted is the escalating complexity of regulatory environments. About two-thirds (60%) of EHS professionals believe that regulatory complexity is increasing at a pace that outstrips their organizations’ ability to adapt. This continuous evolution of compliance requirements demands constant vigilance and resource allocation. Adding to these pressures, a substantial portion of respondents, 64%, cite limited budgets and staffing as significant constraints on their performance. These resource limitations can impede the effective implementation of EHS programs, the adoption of new technologies, and the ability to respond proactively to emerging risks.
The report from VelocityEHS encapsulates this evolving landscape, stating, "The EHS function is gaining influence it has never had before, while EHS professionals and business leaders are adapting to the changing landscape." This statement reflects a dual reality: the increasing strategic importance of EHS, coupled with the ongoing need for EHS professionals to navigate complex regulatory frameworks and resource constraints. The integration of EHS into strategic discussions, while positive, also places greater expectations on these departments to deliver measurable business value and effectively manage a wider array of risks.
Implications and Future Outlook
The findings from both surveys underscore critical trends impacting corporate governance and operational management. The pervasive adoption of AI by board directors without clear guidance presents a significant governance challenge. As AI technologies become more sophisticated and integrated into business operations, the need for robust policies and training on their ethical and secure use by directors will become paramount. This includes defining acceptable use cases, establishing data handling protocols, and ensuring that AI tools used by boards are vetted for security and privacy. The potential for AI to enhance board effectiveness in areas like data analysis and strategic foresight is immense, but this potential can only be realized within a framework of strong oversight and risk mitigation. Failure to address this gap could lead to unintended consequences, including data breaches, compromised decision-making, and erosion of stakeholder trust.
In the realm of EHS, the growing strategic recognition of the function is a positive development that aligns with increasing societal and investor expectations for corporate responsibility. However, the persistent challenges of regulatory complexity and resource limitations require strategic solutions. Organizations that effectively empower their EHS departments with adequate resources, leverage technology, and foster a culture of EHS integration across all business units will be better positioned to manage risks, achieve sustainability goals, and enhance their overall resilience. The increasing influence of EHS professionals suggests an opportunity for them to advocate for the resources and strategic partnerships needed to address these ongoing challenges, thereby maximizing their contribution to the organization’s long-term success.
The confluence of these trends – the rapid, yet often unguided, adoption of AI in governance and the ascendance of EHS as a strategic imperative – signals a dynamic and complex operating environment for modern corporations. Boards and executive leadership will need to prioritize the development of clear policies, invest in appropriate training and resources, and foster a culture of proactive risk management to navigate these evolving landscapes successfully. The ability of organizations to adapt and integrate these changes effectively will be a key determinant of their future performance and sustainability.
