Boards Hunt for AI and Risk Expertise
Boards are actively refreshing their ranks to add deep expertise in risk management and AI. Banner Corporation just appointed a Deloitte alum and a former bank CRO to its board. The moves signal a growing demand for directors and CEOs who can bridge traditional financial acumen with digital transformation and operational risk oversight.
The push for AI and risk expertise on boards is part of a broader governance reset. A recent PwC survey revealed 55% of directors believe at least one of their fellow board members should be replaced, the highest level of dissatisfaction ever recorded by the survey. This highlights a growing impatience with boards that lack the skills to navigate today's challenges. This demand for new skills is creating opportunities for non-traditional director candidates. Digital knowledge has surpassed strategic planning and financial expertise as the most sought-after attribute for new board members. The most recent class of appointed directors has a higher percentage of members with technology, human capital, and cybersecurity skills compared to retiring directors. However, boards are still grappling with the AI knowledge gap. Nearly two-thirds of directors see AI as a top business priority, yet almost 40% feel their board has not received adequate education on the subject. Only 35% of directors report that their boards have actually incorporated AI and generative AI into their oversight roles, indicating a significant lag between recognizing the importance of AI and effectively governing its implementation. The pressure for board refreshment isn't just internal. Institutional investors like BlackRock are scrutinizing board composition, emphasizing the need for a diverse mix of professional backgrounds and subject matter expertise. This external pressure is forcing boards to look beyond their traditional networks and consider executives with hands-on experience in digital transformation. This trend extends to the CEO role, with a notable increase in CEO turnover in the tech sector, which saw a 90% rise in departures in 2024. Companies are increasingly looking for leaders who can navigate AI integration, geopolitical instability, and evolving business models, creating pathways for executives with operational depth in these areas. Boards are also prioritizing adaptability and long-term strategic vision. Over 40% of directors feel they don't spend enough time on strategic planning for the next 10 years, often getting bogged down in short-term results. This is leading to a search for leaders who can not only manage current operations but also anticipate and prepare for future disruptions. While there's a surge in demand for tech-savvy leaders, boards are also showing a preference for those with prior public company CEO experience, especially in the healthcare and tech sectors. At the same time, 86% of global CEO hires in 2025 were first-timers at public companies, suggesting boards are willing to take calculated risks on leaders with the right operational skills, even without a prior CEO title. Ultimately, the goal is to build a board that can act as a strategic asset, not just a compliance body. This involves a shift from legacy skill sets to a forward-looking composition that can guide companies through an era defined by technological disruption and complex global risks. The moves at companies like Banner Corporation are just one example of a widespread talent refresh reshaping corporate governance.
