Middle East boardrooms actively reviewing AI's role in decision-making
35% of Middle East board directors envisaging significant transformation of their role
#MiddleEast #governance – Middle East board directors are leading the world in reviewing what role AI should play in board-level decision-making. 58 percent of boards in the region are actively discussing AI’s role, compared with a global average of 49 percent and just 42 percent of UK board directors. The finding comes from the Board Value Index, a global study by London-based board technology and advisory firm Board Intelligence, which surveyed more than 400 non-executive directors, CEOs and CFOs from companies with over £50 million in turnover across the UK, US, Nordics and Middle East. The same study finds that 86 percent of directors globally say poor decision-making processes have already contributed to at least one delayed, rushed or poor decision in the past six months.
SO WHAT? – As AI moves into the boardroom, the question of where human judgement ends and AI begins is no longer theoretical and prompts questions that boards must resolve. It comes as no surprise that Middle East directors are moving faster than their global peers on this question, given the region’s accelerating AI adoption at enterprise level. The risk for boards that are still only discussing (rather than acting) is that AI deployment runs ahead of governance, creating accountability gaps that are difficult to close retrospectively.
KEY POINTS:
58% of Middle East board directors are actively reviewing which decisions should remain human-led as AI becomes more capable according to the Board Value Index, a global study by London-based Board Intelligence, which surveyed more than 400 non-executive directors, CEOs and CFOs from companies with over £50 million in turnover across the UK, US, Nordics and Middle East.
It seems more Middle East board directors are actively reviewing AI’s potential impact on decision-making than anywhere else in the world. The US follows at 53%, with Nordic boards at 45% and UK boards trailing at 42%.
Globally, 84% of boards have engaged with the human-versus-AI decision question in some form. However, a global average of only 49% have moved to active review. A further 34% have discussed the topic but not yet acted, while 15% have discussed it and delegated further action to management.
The study highlights Middle East boards as the most forward-looking of all regions surveyed. Only 38% of Middle East directors say at least half of board meeting time is spent reviewing past performance, compared with 51% in the UK, 44% in the Nordics and 29% in the US. In general, Middle East boards are more oriented toward future strategy than their global counterparts.
Skills gaps are the sharpest challenge facing Middle East boards: 80% of Middle East directors report that skills gaps have caused at least one delayed or poor decision in the past six months. The figure that points to a widening gap between the strategic demands boards face and the expertise available around the table.
86% of directors globally say rigid or inconsistent decision-making processes have contributed to a poor decision in the past six months. The most commonly cited obstacles are inadequate decision-making frameworks (34%), unclear roles between boards, executives and committees (32%), and poor quality information reaching the board (29%).
Middle East boards are also the most bullish on quantum computing as a strategic opportunity. While 44% of directors globally view quantum primarily through a security risk lens, 30% of Middle East directors see it first as an opportunity (the highest of any region, compared with just 19% in the Nordics).
Middle East directors are the most confident in their board’s contribution to value creation. Globally, only 37% of directors describe their board as essential to value creation, and 15% say it adds little or no value at all. In the Middle East, 42% describe their board as essential (the highest regional figure in the study).
Innovation enablement remains weak globally despite positive sentiment. 79% of directors say their board enables innovation, but only 18% describe it as a strong enabler. Middle East boards lead with 86% saying they enable innovation. A telling internal gap exists between CEOs and CFOs, 27% of whom say their board strongly enables innovation, versus just 12% of non-executive directors.
40% of directors globally expect boards to require little or no meaningful change over the next five years, despite acknowledging AI will fundamentally reshape their organisations. Middle East boards, once again, are the most ambitious about their own transformation, with 35% envisaging significant change or complete reimagining of how boards operate.
[Written and edited with the assistance of AI]
Source: Board Intelligence
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