How should boards govern AI risk?

Boards must address the significant "AI blind spot" by moving beyond passive delegation, which can lead to an abdication of their accountability for outcomes [1]. Because AI now influences critical business functions—such as resource allocation and risk pricing—boards need to increase their AI literacy and ensure the technology is a central part of the board agenda [1, 3]. Effective governance requires a structured, adaptive framework that emphasizes shared responsibility among executives, legal teams, and technical experts [2]. Boards should oversee the implementation of management-based systems that include continuous monitoring, impact assessments, audits, and documentation rather than relying on static rules [10]. Furthermore, as AI shifts into a "compliance emergency" due to emerging regulations in the UK, EU, and US, boards must prioritize oversight to mitigate risks related to liability, trust erosion, and sovereignty [4, 5, 11].