Artificial intelligence (AI) has shifted from an emerging technology to a central topic in boardrooms across industries. For directors, the conversation is no longer about whether AI matters, but how to harness it responsibly to drive growth, efficiency and long-term competitiveness. Boards today are evaluating AI’s potential to reshape operations, reconfigure customer engagement and redefine entire business models, while also confronting its risks.

At the highest levels, board discussions around AI fall into three interrelated areas: operational efficiency, customer experience, and strategic reinvention. Each dimension brings both opportunity and challenge, and companies at the forefront of transformation are providing valuable examples for others to learn from.

Consider operational efficiency. AI is automating complex, repetitive tasks that once consumed enormous amounts of employee time. In financial services, JPMorgan Chase has deployed its COIN platform to review commercial loan agreements in seconds, a process that previously required thousands of lawyer and loan officer hours annually. For directors, this raises important questions: How can AI streamline processes in ways that improve margins without diminishing human oversight? What safeguards need to be in place to maintain accuracy, compliance, and accountability?

The second arena, customer experience, is equally transformative. Retailers are embedding AI into recommendation engines, customer service and supply chain management. Walmart, for example, leverages AI not only to personalize online shopping experiences, but also to optimize in-store inventory, ensuring products are available when and where consumers expect them. These moves highlight how AI can increase customer loyalty, while generating new streams of revenue. For boards, the task is to weigh investments in personalization against growing concerns about data privacy and consumer trust.

Perhaps the most challenging conversations occur in the realm of strategic reinvention. Entire industries are being reshaped by AI and boards must determine whether their companies will lead, follow, or risk being left behind. In healthcare, for instance, AI-driven diagnostics are advancing rapidly. Companies such as PathAI and Tempus are pioneering technologies that improve cancer detection and treatment decisions, with a level of precision difficult for clinicians to achieve alone. These innovations are not simply incremental improvements; they redefine the possibilities of care delivery and raise fundamental questions about how providers and payers must evolve. For directors, the discussion extends to partnerships, acquisitions and ethical guidelines to ensure such transformations align with mission and values.

Underlying all of these opportunities is a shared set of concerns. Boards are acutely aware of the ethical, regulatory, and reputational risks associated with AI. Issues such as algorithmic bias, job displacement, and data governance are not abstract, they are central to how companies will be perceived by stakeholders, from employees to regulators to investors. The challenge for directors is to strike a balance between bold adoption and prudent oversight, fostering innovation, while ensuring AI is deployed responsibly.

For executives pursuing board seats or senior roles, understanding these dynamics is essential. Boards are looking for leaders who can articulate how AI will shape their sector and who bring a nuanced perspective on both the upside and the risks. Just as Chilmark Advisors emphasizes uncovering the hidden market of executive opportunities, forward-looking leaders must position themselves to engage in board-level AI discussions that are shaping strategy across industries.

AI is not a passing trend. It is rapidly becoming a core driver of business transformation, demanding board-level engagement and decisive action. Those who can navigate the complexity, recognizing both the promise and the pitfalls, will play an outsized role in guiding companies through this new era.