Getting Your Board On Board with Generative AI

It’s a conversation happening in boardrooms across the globe: the rise of generative AI. You see the potential. You understand the transformative power it holds for your organization, from automating routine tasks to unlocking entirely new business models. But when you bring it up, you're met with cautious stares, questions about risk, and a general unease.

This isn't a failure of vision on your part. It's a common challenge. As IDC analyst Matthew Eastwood points out, “Most boards are not ready for the strategic and practical aspects of building an AI strategy, so they tend to focus on limiting risks of the unknown rather than seizing the opportunity.” The air is thick with "noise and distraction," making it difficult to present a clear, articulate path forward.

At Vertesia, we believe this conversation is too important to be lost in the noise. We’re here to help you turn your board’s legitimate concerns into a compelling, strategic investment.

Turning Negatives into Positives: The Board's Perspective

A board’s primary role is to protect the organization and its stakeholders. Their focus on risk isn't a roadblock—it's a starting point. By addressing their concerns directly, you can transform a conversation about limitation into one about opportunity. Instead of a discussion about what could go wrong, let's frame it around what we need to get right.

The key is to move past the hype and provide a clear, data-driven narrative. IDC identifies the following crucial questions that are on every board member's mind:

• What are our competitors doing?
  • Are they already leveraging AI to gain a competitive edge in product development, customer service, or operational efficiency?
• What do our customers expect?
  • Customers are increasingly interacting with AI-powered tools in their daily lives. What’s their reaction: frustrating, or positive?
• How are we strategically using AI technology across all business areas?
  • This moves the conversation beyond a single pilot project, and scales it across the enterprise.
• How are we addressing IT risks?
  • From data privacy to cybersecurity, addressing potential risks of Gen AI is paramount.

A Step-by-Step Guide to Crafting Your AI Charter

The conversation about AI needs to be structured and intentional. Here is a step-by-step guide to help you build a comprehensive plan that will resonate with your board:

Step 1: The "AI 101 for Directors" Primer

Before you even book the meeting, your board needs a foundational understanding of generative AI. The goal of this primer is to demystify the technology and shift the conversation from abstract fear to concrete opportunity. This document should be concise, jargon-free, and focused on the strategic implications for your business, not the technical details.

The primer should cover a few key areas:

• What is Generative AI?
  • Start with a simple, clear definition. Generative AI is a category of artificial intelligence that can create new, original content—from text and images to code and data. Unlike traditional AI that analyzes and classifies existing data, generative AI produces new content based on patterns it has learned from vast datasets. And it's not magic; it's a powerful set of software tools for creation and augmentation.
    
    
• How does it work? (The simple version).
  • Briefly explain the underlying concept of Large Language Models (LLMs) and other generative models without getting lost in the weeds. Think of it like a highly sophisticated auto-complete system that has learned from nearly all the digital information on the internet. It can predict the next word in a sentence, the next line of code, or the next pixel in an image with incredible accuracy and creativity. And - you can provide specific guardrails to LLMs so that they always perform within your business context and rules.
    
    
• From Risk to Reward: Strategic Applications vs. Board Concerns.
  • This is where you connect the technology to your business. Present a table or a series of bullet points that directly address a common board concern and reframe it as a strategic opportunity.

Industry-Specific Examples will Bring the Conversation to Life

Here are a few industry-specific examples you can include in your primer to make the potential of generative AI concrete for your board members.

For Retail and E-commerce Companies:

For Financial Services Companies:

For Manufacturing Companies:

This primer sets the stage for a productive discussion, grounding the conversation in practical business applications and demonstrating that you've thought critically about both the potential and the pitfalls. And, it helps to demystify AI. AI can seem scary, or at least, unknowable, but breaking it down and explaining it to your board will help to alleviate some of these fears. 

Step 2: Ask the Right Questions

As you prepare to build your AI strategy, it's critical to assess your organization's readiness. AI sounds like a good idea, but it’s better to be honest with yourself and really assess your organization’s aptitude for implementing and deploying Gen AI. Ask yourselves some of these questions (and prepare the answers, because your board members will certainly ask them!):

• Do we have the data quality needed to fuel our AI initiatives?
• Do we have the right talent to execute our vision?
• Is our IT infrastructure prepared to support scalable AI deployments?

Step 3: Craft Your AI Charter

This is your master plan. The AI charter is a formal document that outlines your organization's vision for AI. It should include:

• The Vision: A clear statement of how AI will drive your company's mission and create value.
• Key Pillars: The strategic areas where AI will be applied (e.g., customer experience, operational efficiency, new product development).
• Governance Framework: A detailed plan for managing data privacy, security, ethics, and compliance.
• Resource Allocation: A breakdown of the investment required, including talent, technology, and infrastructure.
• Measurement of Success: Key performance indicators (KPIs) that will be used to track progress and demonstrate ROI.

Let's Build Your Future, Together

Getting your board on board with generative AI is not just about adopting new technology—it's about charting a new strategic course for your organization. By moving the conversation from fear to opportunity, and by presenting a clear, well-structured plan, you can gain the support you need to make a lasting impact.

At Vertesia, we are more than just a technology provider; we are your strategic partner in this journey. We understand that generative AI is not a one-size-fits-all solution. That's why we work side-by-side with you to create a holistic, enterprise-wide strategy that shows how AI will create value in every department. We'll help you benchmark your position against competitors, understand and exceed evolving customer expectations, and build a robust governance framework that demonstrates a clear understanding of the risks and a proactive plan to mitigate them. Let us help you move from a discussion of "what if" to a concrete plan for "how we will," ensuring your board sees the clear path to a more innovative, efficient, and profitable future.

Ready to start the conversation? Contact us today to learn how we can help you get your board on board.

IDC research cited: "Build Versus Buy Decision-Making: Optimizing AI-Ready Infrastructure ROI" March, 2024