Does your board have AI FOMO?

So it’s perhaps unsurprising that many businesses are still unsure of exactly how to make best use of the new tech wunderkind, which promises to change the world as we know it.  

You don’t have to look far to find surveys and studies which support this notion. 

Earlier this year, the Institute of Directors in the UK concluded that “AI adoption and governance must be treated as a strategic boardroom, not a purely technical matter.” The IoD found in a survey of its members that half cited “limited expertise or understanding of models and tools at management and board level” as the top concern for AI adoption.  

Our own research showed that while an overwhelming majority (97%) of C-suite executives say they’re ready for AI, only a third (33%) are investing in data improvements to build a coherent strategy. And despite almost half of companies having put in place experimental or pilot projects, only 41% have actually established governance around the use of AI.  

So if companies have yet to find their AI feet, why are so many rushing headlong into an AI-powered future? While there are many good reasons to explore AI as a key strategic tool in your company’s arsenal, we put much of the haste down to AI FOMO.  

AI FOMO is real 

AI FOMO – the Fear Of Missing Out – is an understandable phenomenon. Hyped by a firestorm of media attention, aggressive vendor marketing and confident assertions that AI will change the world to perhaps an even greater extent than the internet, the clamour to adoption makes a lot of sense. 

But like most breathless trends, it pays to step back and take a clear-eyed look at the subject. 

The fact is that very few boards contain significant AI expertise.  

In such a nascent sector, that’s unsurprising. What it can lead to, however, can be ineffective at best and dangerous at worst.  

Many businesses are reshaping business processes with inadequate or incomplete data. That isn’t artificial intelligence, it’s artificial information. Making decisions or taking action based on poor data has always been a bad idea; doing it at the scale enabled by AI has the potential to be a disaster.  

Future foundations 

The essential but unexciting foundation of a good AI strategy is quality data. Compare the issue to seeking new funding or making a major acquisition. Getting the basics right – ensuring data integrity, a robust business case, solid commercials – is a non-negotiable precursor to deployment. So should it be with AI. 

Only with the right preparation and diligence can your AI strategy start to take shape in the real world. The rapid pace of change often conveyed in public can encourage a hurried approach. We’d caution that this needs to be tempered by taking a long-term view. The tools and models being used today are not the same as those which will be in use a year from now. Creating a long-term strategy with enough flex to take advantage of shorter-term market developments is a critical element of success. 

Consider the skills on your board and, if necessary, augment with advisory boards drawn from the business or industry, to ensure inputs are as current as possible. Boards should give serious thought to recruiting a tech NED – someone with the technology expertise to identify the opportunities AI can bring to the organisation. A tech NED can also advise on risks and mitigations when deploying new technology.  

But don’t overlook the experience of the less tech-savvy heads in your boardroom. While AI may not be their specialist subject, it’s almost certain that they’ve experienced their fair share of other mistakes during their route to non-executive roles. This can offer invaluable insight when venturing into new territory.  

While the potential of this exciting technology is still being written, there’s little doubt that it offers serious advantages to those organisations which can successfully make use of its power. It's easy to be blinded by the hype around AI. Approaching it with eyes open – and resisting the temptation to rush – gives organisations the best chance of successful initial adoption and the opportunity to develop as the AI market matures.  

Get in touch

Our team of AI specialists is equipped to support your business at every stage of its AI adoption journey.