As the use of Artificial Intelligence (AI) grows across industries, boards of directors are increasingly engaged in discussions about its impact. However, many board members are struggling to balance excitement with caution, leading to a need for clear, strategic communication from technology leaders.

In a recent presentation at the Gartner IT Symposium/ Expo, Tina Nunno, a distinguished VP Analyst at Gartner, shared valuable insights on how boards’ expectations around AI have evolved and how CIOs can successfully manage discussions on revenue, cost, and risk.

The Shift in AI Conversations

Board conversations around AI have changed dramatically in recent years. In 2022, the focus was primarily on understanding the fundamentals, with the key question being, “What is AI?“

By early 2023, these discussions quickly pivoted toward risk management, as boards became eager to understand the risks associated with AI and its governance within the enterprise.

“Show me the money,” became the prevailing demand by mid-2023.

Board members were no longer satisfied with theoretical discussions about AI’s potential. They wanted tangible financial outcomes—clear projections on how AI investments would drive revenue, reduce costs, or mitigate risks.

Tailoring AI Presentations for Boards

A central theme in Nunno’s talk was the need for clarity and precision when presenting AI to boards. She introduced a practical framework, B.O.A.R.D., which stands for brief, open, accurate, relevant, and diplomatic.

Each of these principles ensures that CIOs communicate effectively with boards, aligning technical discussions with business objectives.

Brief: Nunno emphasized the importance of keeping presentations concise and focused. She pointed out that many board members are overwhelmed by lengthy reports, often spanning over 100 pages, when their preference is for concise, data-driven insights.

In fact, the average board member favors a 40-page report to stay engaged and make informed decisions.

Brevity allows CIOs to zero in on what matters most to the board: oversight and strategic direction, focusing less on completeness and more on delivering the key insights necessary for decision-making.

Open: Transparency is also key, particularly regarding how aggressive or cautious an organization is in its AI adoption.

Boards increasingly want to know how their AI strategies compare with competitors and whether the organization is moving fast enough. This openness fosters trust and confidence in leadership.

Accurate: Setting realistic expectations about AI’s potential and its risks is crucial.

Nunno used the analogy of a theme park ride, saying, “You have to be this tall to ride,” to emphasize that not all organizations are equally prepared to implement AI.

CIOs must be upfront about their organization’s starting point, technological maturity, and readiness to manage AI’s inherent risks.

Relevant: Boards care primarily about three things: revenue, cost, and risk.

Nunno repeatedly emphasized the importance of tying AI discussions back to shareholder value. She advised CIOs to ensure that every conversation about AI is framed through the lens of these three factors.

For example, will AI initiatives drive revenue growth, reduce operational costs, or mitigate business risks?

In addition, the conversation further urged CIOs to connect AI initiatives to the board’s primary focus: financial statements.

“Boards find it incredibly helpful when you can draw a direct line between AI and its impact on the income statement, balance sheet, or cash flow.”

Tina Nunno

Diplomatic: Given the complexities and volatility surrounding AI, diplomacy is essential when discussing its risks.

Nunno suggested that rather than presenting AI as an all-or-nothing proposition, CIOs should adopt a portfolio approach to AI risks and opportunities, much like managing an investment portfolio.

This balanced perspective reassures boards that AI is being managed prudently.

Boards are increasingly looking for a nuanced understanding of AI risk management and CIOs should prepare to participate in new board structures, such as AI or technology-focused committees, which are being formed to oversee AI strategies more effectively.

AI in the Boardroom: A Growing Reality

One of the most intriguing developments discussed was how AI is making its way directly into boardrooms.

While still in its infancy, some boards have begun leveraging AI for routine tasks such as note-taking or summarizing board materials, reflecting how AI is gradually becoming a functional part of the governance process, assisting with administrative efficiency and decision-making.

Some organizations are experimenting with even more advanced uses of AI in governance by introducing non-voting AI systems as advisory tools. These AI systems are designed to provide insights or analyses to board members, offering an additional layer of information for decision-making.

However, this innovation has been met with mixed reactions.

While some board members are intrigued by the potential, others, particularly those nearing retirement, have expressed relief at not having to fully integrate AI into their board roles, given the complexities and unknowns associated with such technology.

The Competitive Edge of AI

A recurring theme in Nunno’s presentation was the importance of AI as a competitive differentiator.

CIOs who are able to clearly articulate AI’s role in driving business value and managing risks are positioning their organizations to lead in the industry.

Nunno pointed out that AI presents a unique opportunity for CIOs to show leadership and vision, not just in terms of technology but also in how it aligns with business strategy.

The Wrap

Boards are more focused on technology than ever before, making it essential for CIOs to refine their communication strategies. To engage effectively, AI discussions must be concise, clear, and closely aligned with the organization’s business priorities.

By framing these conversations around shareholder value and presenting AI initiatives in a strategic, digestible format, CIOs can help boards not only embrace AI’s potential but also protect the organization’s long-term interests.

As Nunno wisely put it, “Set the expectations, and get ready to reset them, and reset them, and reset them.”