AI continues to dominate boardroom discussions. The governance and legal teams that I speak to are often facing two related challenges: advising on the risks associated with AI and responding to growing expectations to use AI to deliver work more quickly and efficiently.
The greatest value in AI is not that it can replace governance professionals. It is that it can give them more time to apply the judgement, challenge and experience that good governance depends upon.
The question is therefore not whether governance professionals should expand their use of AI, but where they should use it and where they should not..
Use AI to reduce administration, not judgement
Many governance activities are highly process-driven and involve managing large amounts of information. Used appropriately, AI can help with agenda planning, summarising lengthy board papers, supporting aspects of statutory reporting and making governance information more accessible.
The real benefit is not simply efficiency; it’s creating more time for governance professionals to focus on areas where they add most value such as supporting board decision-making, overseeing risk management and improving governance outcomes.
AI can also help organisations communicate more effectively with stakeholders. As annual reports continue to grow in length and complexity, AI-generated summaries can help make key messages around strategy, performance, risk and ESG reporting more accessible.
Good governance still requires human oversight
Where organisations should exercise caution is when AI is viewed as a substitute for professional judgement rather than a tool to support it.
Governance is rarely about finding a standard answer to a standard problem. It requires an understanding of context, regulatory expectations and organisational culture. AI can analyse information quickly, but it cannot fully understand the unique circumstances facing a business.
There is therefore a risk that generic or inaccurate content finds its way into reports, policies and governance documents without sufficient challenge. Governance professionals should apply the same level of scrutiny to AI-generated content as they would to information from any other source.
Additional risks for regulated organisations
The risks become more significant in regulated sectors, where governance records, board minutes and reports may be scrutinised by regulators, auditors and investors.
Oraganizations using AI in governance processes need confidence that outputs are accurate, complete and appropriately reviewed. They should also consider how AI-generated content and supporting materials are retained, managed and, where appropriate, disposed of.
Similarly, caution should be exercised when using AI to draft policies and procedures. Regulatory requirements are often highly sector-specific and may not always be reflected accurately in AI-generated outputs.
Building AI literacy
The governance professionals who are likely to benefit most from using AI are not necessarily those who adopt it first. They are those who understand both its capabilities and its limitations.
That does not require governance professionals to become technologists. It does require a working understanding of how AI tools operate, how to prompt them effectively and, most importantly, how to critically assess what they produce.
A tool, not a replacement
AI is growing in its importance as a tool for governance teams. It can reduce administrative burden, improve access to information and free up time for higher-value work. What it cannot do is replace judgement.
Boards remain accountable for their decisions, and governance professionals remain responsible for providing support, challenge and oversight. Those responsibilities cannot be delegated to technology.
The greatest mistake organisations can make is to view AI as a substitute for governance expertise. Governance is fundamentally about judgement, accountability and challenge - qualities that remain uniquely human.
The governance teams that succeed will not be those that adopt AI fastest, but those that adopt it most intelligently. AI can help process information, identify patterns and remove administrative burden. What it cannot do is replace professional judgement, ethical decision-making or accountability. Those responsibilities remain firmly with governance professionals and the boards they support.
Gary Gray
Gary Gray FCG is a legal director and head of governance and company secretarial services (UK) at Pinsent Masons.
