This survey of directors, though anecdotal, highlights both the limitations and potential of AI in supporting boards of directors. While AI use for information gathering and analysis is not yet widespread among boards, the trend is growing as AI increasingly permeates organizations from entry-level to executive leadership. AI holds enormous potential to fundamentally transform organizational operations. A recent McKinsey survey found nearly 80% of companies use AI in workflows, business processes, and data analysis. Boards are dedicating more time to AI discussions, with over 62% of directors involved in full-board conversations on AI policies within their companies. The key question is how board members can efficiently and ethically leverage AI. As an experienced board member and former CEO of a $12 billion healthcare firm, I remain optimistic about AI’s ability to enhance problem-solving and decision-making. AI should be used not as a substitute for human judgment but as a tool that supports more informed decisions by both boards and management. Augmenting board activities, AI can empower directors to be better informed and more engaged when discussing challenges, strategy, and operations with management. One major benefit is in augmenting the “board package” that summarizes company performance, competitive challenges, and potential acquisitions. Directors rely on this information to prepare for meetings, but the data is filtered by management to balance detail and discussion depth. Open and transparent communication, providing enough information for meaningful dialogue without overwhelming directors, is essential for trust between boards and management. As a former board member told me on becoming CEO of Baxter International: “Never surprise me, Harry. I don’t want to hear Baxter news on the radio before I know about it. ” Still, management cannot be expected to educate directors comprehensively on every economic, geopolitical, or operational issue affecting the company.

There is also a natural tendency for management to emphasize positive developments over significant problems. In today’s complex environment, boards must take greater responsibility for self-education to develop a well-rounded view, crucial for values-based leadership. Here, next-generation AI tools can be invaluable. For example, a company considering the effects of U. S. tariffs on Chinese imports and the possibility of shifting production to Southeast Asia can use AI to rapidly gather current information on tariff changes and trade negotiations. With a few keystrokes, board members can also learn how other sectors are affected and what decisions they are making. However, the human element remains critical. As Mohan Sawhney of Northwestern’s Kellogg School of Management noted, while AI technology itself is relatively easy to handle, “it’s the human part that you really need to pay attention to, because if you don’t think about humans, machines won’t think about you. ” Board members often require extensive education to become comfortable using AI. The average age of S&P 500 directors is 63, with many serving into their seventies, meaning most are not digital natives. Furthermore, as any user of generative AI knows, the quality of responses depends heavily on how questions are asked. This demands more than a quick introductory session; directors need ongoing training on practical use and ethical considerations, such as avoiding the disclosure of confidential information in AI queries. As business landscapes evolve, companies and boards must adapt accordingly. By embracing and mastering tools like AI, directors can better fulfill their fiduciary duties and serve shareholders effectively. The views expressed in this Fortune. com commentary are solely those of the author and do not necessarily represent Fortune’s opinions.