AI In The Boardroom : Key Takeaways For Directors and Company Secretaries

Introduction

Last week, I attended the 14^th Annual Board Directors and Company Secretaries’ Conference organised by the Chartered Governance Institute UK &Ireland in partnership with KPMG,  at Mestil Hotel, where the discussions centred around one of the most critical topics in corporate governance today—Artificial Intelligence (AI) and its impact on boardroom decision-making. The conference brought together government representatives, board directors, top management officials, governance professionals, legal experts, and AI specialists to explore how boards and company secretaries can effectively navigate the opportunities and risks that AI presents.

With AI increasingly influencing corporate operations—from risk management and compliance to decision-making and strategy—boards must adopt proactive governance measures to ensure ethical, legal, and financially sound AI implementation.

Here are the key takeaways for board directors and company secretaries on how to navigate AI in the boardroom:

Data Governance and Ethical Considerations

AI tools rely on vast amounts of data, making data governance a critical priority for organizations. Board members must ensure that:

1. AI tools align with ethical considerations and do not compromise corporate integrity.
2. Risk management algorithms are designed to track risks without bias.
3. AI tools used in board meetings comply with data protection regulations to prevent breaches.

AI Implementation Strategy

Organizations should not rush to implement AI without proper testing and planning. Boards must ensure that:

1. AI tools are test-run before full-scale adoption to understand their impact.
2. Investments in AI are driven by clear return on investment (ROI) and strategic value.
3. Company secretaries keep boards informed about emerging AI regulations (e.g., EU AI Act, Uganda’s Data Protection Law) to help organizations stay compliant.

Developing AI Governance Frameworks

AI governance cannot be an afterthought. Organizations should develop AI policies and governance structures to regulate AI use and mitigate risks.

Strategies to address AI risks such as:

1. Bias against women in AI-driven hiring.
2. The monotony and predictability of AI-generated content.
3. AI’s lack of emotional intelligence, making it unsuitable for certain decision-making processes.

Boards should therefore ensure that AI serves as an augmenter rather than a replacement for human expertise.

Data Protection and Regulatory Compliance

AI governance must align with data protection laws. Boards must address:

1. How company data is protected when using AI tools.
2. The organization’s AI policy on data usage and compliance with Uganda’s Data Protection Laws.
3. Employee training on the sensitivity of AI to prevent unintentional exposure of confidential information.

AI-Specific Decision-Making

Before adopting AI, boards should critically assess:

1. Why AI tools are necessary and what strategic role they will play.
2. Which AI tools best align with the company’s objectives.
3. What the organization aims to achieve through AI integration.

Instead of relying on generic AI solutions, companies should consider developing industry-specific AI tools or eventually investing in in-house AI solutions.

Financial and Legal Considerations

Boards should conduct a cost-benefit analysis before investing in AI to ensure financial viability.

AI introduces legal risks related to data privacy. Boards must therefore review confidentiality clauses in contracts to mitigate risks of feeding sensitive data into AI systems.

Preparing for AI Disruption

Boards should anticipate how AI could disrupt their industry and implement strategic interventions to stay ahead. Some of the reports that have attempted to project how AI is disrupting the market place  include:

1. World Economic Forum report on work disruption (https://reports.weforum.org/docs/WEF_Future_of_Jobs_Report_2025.pdf)
2. Various KPMG/PWC reports on AI’s influence on the global economy (https://assets.kpmg.com/content/dam/kpmg/tr/pdf/2021/02/living-in-ai-world.pdf)

Overall, AI is undeniably seeping through industries, but its adoption if at all must be intentional, ethical, and well-governed. Board directors and company secretaries have a responsibility to ensure AI is leveraged as a tool for growth, not a source of risk or ethical compromise.

In considering and integrating the use of AI, we must also remain grounded in our Godly values ensuring that we build God-centred interventions and solutions because we are called to be the salt of the earth.