Research conducted by Board Intelligence and the Corporate Governance Institute has revealed that directors are concerned about their own technological literacy and that of their fellow board members.
Tech acumen is weighing on directors’ minds
One-third of board members are concerned that their lack of tech skills and expertise reflects poorly on them, and half can think of at least one fellow board member who should be replaced by someone more tech-savvy.
Most of my board has the skills/knowledge to oversee the use of tech
Source: Corporate Governance Institute and Board Intelligence 2023 survey.
Many boards are still underequipped
The research raises questions about boards' ability to oversee technological matters. When asked whether their board challenges management on technology strategy and issues as robustly as on other topics, such as financial performance, half of the respondents disagreed. And only one in five are currently examining the use of AI tools such as ChatGPT/GPT4 and Bard.
The findings also highlight concerns about how effectively boards are using the wide variety of tech tools available to improve their own performance. While the adoption of board portals is widespread, one-third of the survey's respondents reported that their board did not currently use one, despite the benefits (such as keeping vital information secure from cyberthreats). Perhaps unsurprisingly, those directors reported notably higher levels of dissatisfaction with the security of their board information.
How satisfied are you that your board information is secure?
What do directors want? Better tools and support
This doesn’t mean all directors are modern-day Luddites. Quite the contrary, they are self-aware, take their responsibilities seriously, and want improved support. Over 80% of respondents were keen to see their boards make better use of technology to enhance their performance. Meanwhile, 90% wanted more training to ensure they could adequately use and oversee the organization’s technology.
“Being tech-savvy is no longer a voluntary option, it’s now an essential part of being a competent board member.”
~ Adapt or perish — the technology challenge for boards, Corporate Governance Institute, 2023
The research was conducted from May to July 2023 and included over 250 participants, consisting of chairs, NEDs, and executive directors from both public and private sectors, including state-funded organizations and charities.
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