Unleashing the Power of Female Leadership in Generative AI: A Game-Changing Series
- Susan Mcleod
- Mar 18
- 6 min read
The C-Suite's and Boards Role in Leading AI Transformation
Guest: Renée B. Lahti,
Linei Kōkua Advisory
"We are now living in a world where managements and boards have to be more nimble, collaborative and curious, because we are in an environment where companies have to embrace uncertainty."
Cassandra Kelly AM, International Advisor, Company Director, & Expert on Leadership and Technological Innovation.
Enterprise-wide AI success requires C-suite alignment and Board support. Many organizations fail due to insufficient commitment from executive leadership, leading to financial losses and wasted effort.
Deloitte's latest article, "Governance of AI: A Critical Imperative for Today's Board," reveals that only 3% of surveyed C-suite executives feel their organizations are very ready for AI deployment and 41% admit they are not ready at all. In addition, almost half (46%) of respondents would like their boards to be devoting more time to AI oversight.1 These numbers highlight the urgent need for leadership to prioritize AI readiness at the highest level.2
Many enterprises face failure in their AI initiatives due to weak or fragmented executive support. Without a unified vision from the top, AI projects will struggle to gain traction, wasting resources and time. The C-suite must spearhead these efforts, supported by the Board, by setting a clear direction, securing necessary investments, and fostering a culture of AI-driven innovation.
Before going any further, let’s take a moment to acknowledge an important reality: There are likely logical, strategic, or business-driven reasons why the C-suite and Board may feel their organizations—or even themselves—are not yet ready for AI.
Reflecting back to 2015, a survey of approximately 200 public company board members revealed that 80% were confident their companies were adequately secured against cyberattacks. However, only 22% reported discussing cybersecurity matters at meetings, indicating a gap between perceived security and the frequency of strategic discussions on the topic.3
Even a recently as last year, findings indicate that many organizations are ill-prepared for cyber threats due to a lack of direction and attention from the C-suite and Board. For instance, more than half (58%) of respondents experienced over six ransomware incidents in the past year, with 40% facing ten or more.4
The current reticence towards AI mirrors the early days of cybersecurity adoption, where boards were slow to prioritize it, often due to a lack of understanding, perceived complexity or attributing it to being an IT Thing. Over time, as awareness grew about cybersecurity's critical importance to business continuity and reputation, it became a staple on board agendas. The challenge is to ensure AI does not follow a similar trajectory on board agendas. The goal is to learn from the past so that AI adoption follows a more insightful, rapid trajectory—driven by curiosity, informed leadership, and governance foresight—rather than reactionary urgency.
The limited focus on AI within corporate boardrooms and C-suites can be attributed to several factors:
Lack of Understanding and Expertise: A significant number of board members lack a deep understanding of AI technologies. A Deloitte survey revealed that 45% of organizations have never included AI on their board agendas, and 46% of respondents expressed concern about insufficient oversight of AI initiatives.5
Leadership Skepticism and Fear of the Unknown: Some executives exhibit skepticism towards AI, often due to concerns about costs, return on investment, and integration challenges. This apprehension can stem from a fear of the unknown and a lack of knowledge about AI's potential benefits.6
Perceived Technical Complexity: AI is often seen as a highly technical domain, leading some leaders to categorize it solely as an IT issue rather than a strategic business imperative. This perception can result in underestimating AI's potential to drive business innovation and competitiveness.
Regulatory and Ethical Concerns: The evolving regulatory landscape and ethical considerations surrounding AI usage contribute to hesitancy. Many leaders are wary of potential legal implications and the ethical ramifications of AI deployment, leading to a more cautious stance.
Addressing these challenges requires a concerted effort to educate and engage on AI's strategic benefits, fostering a cross-functional collaborative culture that views AI as integral to business innovation and competitiveness. Speaking as both a C-suite tech exec and a board member myself, I found that during unexpected transformational periods, checking my Emotional Intelligence (EQ) and Positive Intelligence (PQ) helped me recognize and overcome barriers preventing maximum adoption and strategic integration success within the enterprise.
PDF link below: AI Leadership Reflection Exercise for C-Suite and Board Members
Another helpful tip: along with self-reflection, having a Chief of Staff, senior advisor, or another influential direct report who can support a more curious, informed, and strategic approach to AI is advantageous. These individuals usually offer perspectives that align AI with decision-making priorities such as risk mitigation, long-term growth, and competitive advantage.
Now, with an adjusted tone at the top, an enterprise is prepared for a unified AI strategy across all functions, working together to eliminate silos that cause competition and instead promote cross-functional teams. Successful execution requires cooperation without ego, politics, or divisiveness to avoid failure.
In parallel, the following actions should occur within the enterprise:
Secure board and executive buy-in by highlighting the strategic value of AI in achieving long-term business goals.
Executives and board members must recognize AI as a transformative force that can drive revenue growth, enhance operational efficiency, and improve customer experience. By presenting AI as a critical enabler of innovation and competitive differentiation, initiative sponsors can ensure that executive leadership is fully aligned with the long-term vision. Framing AI initiatives as a vital part of future-proofing the company helps secure buy-in at the highest levels, establishing it as a priority in the corporate strategy.
Educate and upskill executives on the fundamentals of AI, so they can make informed decisions and effectively lead AI transformation efforts. Evangelize this through the organization.
For C-suite leaders and board members, an understanding of AI is vital not just for guiding strategic decisions but also for overseeing risk management and technological implementation. Demystify AI's capabilities, limitations, and ethical considerations empowers informed decision-making. Encourage knowledge-sharing as part of the culture by actively championing AI education within the organization, creating a top-down movement of transformation.
Align AI initiatives with business goals by ensuring that AI projects are directly tied to value, competitive advantage, and market leadership.
AI isn’t just a tech initiative—it must be aligned with key performance indicators (KPIs) that matter most to the C-suite, such as value (intrinsic & market), customer satisfaction, and market leadership. Support proposed AI solutions that deliver measurable business outcomes, such as improving operational efficiencies, reducing costs, or unlocking new revenue streams. Those proposing should ensure AI directly contributes to the company’s financial health and competitive positioning.
AI thrives in environments where horizontal and vertical cross-functional collaboration is a priority. C-suite leaders should lead by example promoting collaboration between departments like IT, marketing, operations, and customer service. Championing a culture of continuous innovation and fostering an agile, forward-thinking mindset encourages teams to explore AI’s across various facets of the business, ensuring the company doesn’t just adopt AI but strategically integrates it to stay ahead of competitors.
While C-suite leadership is crucial for driving AI adoption, board members also play a key role in ensuring AI is a strategic priority rather than a siloed initiative. Boards should provide oversight, challenge executive teams to align AI investments with business objectives, and ensure AI governance frameworks address ethical, regulatory, and unintended outcome risk management considerations. Board members should strengthen their AI literacy and oversight at board meetings—bringing experts with insights on industry trends, risks, and opportunities that help shape informed decision-making. By actively engaging in AI discussions, boards can help shape a vision that balances innovation with responsible leadership, reinforcing AI is an approachable, enterprise-wide imperative rather than a technology project.
Check-in: Are you as an executive leader prepared to take the helm and guide the enterprise through an AI transformation? As a board member, are you prepared?
Takeaway: AI acceptance begins at the top with self-reflection. Without strong leadership, the journey to success in AI may be hindered before it even begins.
By refreshing one’s EQ (self-awareness & adaptability) and PQ (curiosity & positive strategic thinking) in relation to AI, C-suite executives and board members can shift from:
Final Thought: Transforming Hesitation into AI Leadership Readiness
Engaging with AI as the C-suite or the Board doesn’t mean mastering the technology—it means knowing the right questions to ask, understanding the risks, and leveraging AI strategically.
Superscripted Sources:
2. Deloitte’s latest report on AI governance (Deloitte Global Boardroom Program, 2024)
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