As we shift into full gear for the new year, corporate boards are prioritizing artificial intelligence, cybersecurity, and data privacy as critical areas for strategic oversight.

The 2025 What Directors Think report, published by Corporate Board Member, reveals that directors are increasingly focused on both the opportunities and risks associated with emerging technologies.

AI is rapidly becoming a core business driver, yet many directors acknowledge a gap in leadership expertise when it comes to governance and implementation. Meanwhile, cybersecurity threats continue to escalate, with ransomware attacks, data breaches, and third-party vulnerabilities forcing companies to strengthen their defenses. Data privacy concerns are also mounting, as evolving regulations demand greater transparency and stricter compliance measures.

These issues are no longer just IT concerns, they are boardroom imperatives.

AI: From Curiosity to Core Business Strategy

Artificial intelligence has moved beyond a buzzword in the boardroom. 80% of directors reported that their companies are actively responding to AI advancements, with nearly half integrating AI into core business areas.

Despite the enthusiasm, challenges persist.

A third of board members cite a lack of knowledge and capabilities within leadership teams as a major obstacle to effective AI implementation. This underscores the need for continuous education and stronger AI governance frameworks to ensure responsible deployment. Boards are increasingly recognizing that AI is not just an operational tool but a transformative force that requires oversight, ethical considerations, and a clear strategic roadmap.

Cybersecurity: A Growing Concern Amid Rising Threats

With cyberattacks becoming more sophisticated, 61% of directors identified cybersecurity as a critical risk for their organizations in 2025. The increasing frequency of high-profile breaches and ransomware attacks has pushed cybersecurity discussions higher on the boardroom agenda.

However, while awareness is high, execution remains a challenge and many companies struggle to implement comprehensive risk mitigation strategies.

Key concerns include:

• Ransomware and Data Breaches: The financial and reputational costs of cyber incidents continue to escalate. Directors are pushing for enhanced incident response plans and greater investment in cyber resilience.
• Third-Party Cyber Risks: As businesses expand digital partnerships, vulnerabilities in third-party vendors are becoming a major risk. Boards are emphasizing stronger due diligence and supply chain security.
• Regulatory Compliance: Governments worldwide are tightening cybersecurity regulations, requiring companies to demonstrate stronger governance and reporting measures. Compliance is no longer optional—it’s a business imperative.

Given these concerns, directors are advocating for a more proactive cybersecurity strategy, including regular penetration testing, AI-driven threat detection, and better alignment between IT and board-level decision-makers.

Data Privacy and Regulatory Pressures

Data privacy remains a top concern for boards, particularly as governments introduce stricter regulations on data collection, storage, and usage. New privacy laws, such as the evolving European Union’s General Data Protection Regulation (GDPR) and U.S. state-level legislation, are forcing companies to reassess their data governance strategies.

Boards are focused on:

• Consumer Trust and Compliance: Organizations are under growing pressure to be transparent about how they handle consumer data. Non-compliance risks hefty fines and reputational damage.
• AI and Data Ethics: With AI-driven decision-making relying on vast amounts of data, ethical concerns around bias, transparency, and consent are becoming major discussion points.
• Cross-Border Data Transfers: As global data transfer laws evolve, multinational corporations must navigate complex regulatory environments to ensure compliance.

To address these challenges, directors are emphasizing the importance of legal teams working closely with IT and cybersecurity teams. Stronger governance frameworks and data protection technologies, such as AI-powered compliance monitoring, are becoming essential tools for ensuring regulatory adherence.

Credit: 2025 What Directors Think Report

The Wrap

The What Directors Think 2025 report reinforces the critical role of AI, cybersecurity, and data privacy in boardroom discussions. AI is becoming a strategic imperative, but boards must address knowledge gaps and ethical concerns. Cyber threats are escalating, requiring companies to adopt stronger security measures and proactive risk management. Meanwhile, evolving data privacy regulations demand greater compliance efforts and more transparent data practices.

Boards that successfully integrate AI while strengthening cybersecurity and data privacy frameworks will be better positioned for long-term success.

As these challenges evolve, directors must ensure that their companies are not just keeping pace with technological advancements but leading the way in responsible and secure innovation.