AI Governance & Strategic Agility
As organizations face unprecedented challenges, boards are uniquely positioned to help strengthen governance and build strategic agility.
In Brief
Board members play a critical role in guiding organizations through crises, especially as AI reshapes business models and decision-making. As the AI-driven future accelerates, agility and proactive governance will be essential to pivoting effectively and turning disruption into competitive advantage.
As the regulatory landscape evolves, boards must prioritize transparency, ethical oversight, and accountability to sustain trust and deliver long-term value. In times of uncertainty, the ability to pivot quickly and govern responsibly will distinguish those who lead from those who lag.
In Canada, the regulatory horizon is coming into sharp focus. The federal government’s transparency-enhancing AI Register is defining how AI will be used in federal institutions. Other standards, such as Bill C-8, the Critical Cyber Systems Protection Act, and the Office of the Superintendent of Financial Institutions’ (OSFI) Guideline E-23—which requires federally regulated financial institutions to establish enterprise-wide model risk management for AI and machine learning—are set for implementation in 2027.
Tim Buss, Partner, emphasizes, “Challenging leadership on assumptions and asking critical questions are among some of the most important ways board members contribute value as unpredictability becomes not only the new normal but the one constant businesses can rely on.”
Key Questions for Board Members
Here are six questions board members should consider asking to help keep leaders on track as the market evolves:
- How resilient is our strategy?
- Are we investing appropriately in both agility and innovation?
- Do we understand our vulnerabilities and who’s monitoring them?
- Are we balancing the short and long term: survival versus value creation?
- How are we using data to stay ahead of change?
- Are we communicating transparently?
Strategic Agility: Turning Disruption into Advantage
Disruption is now constant, yet strategy often struggles to keep pace. As markets, technologies, and stakeholder expectations evolve faster than most planning cycles, boards need to maintain agility to connect foresight with execution. Staying attuned to early signals of change can help leaders turn potential threats into opportunities.
Leadership alone cannot correct strategic misalignment. Organizations that succeed are those whose strategic planning is embedded in operations. When decisions are synchronized, data-informed, and grounded by market and customer insights, boards can see both the big picture and operational details. This integration enables them to adapt, act, and outperform amid uncertainty.
Stress-Testing for Success
Stress-testing scenarios to manage risk and understand how strategies will play out in changing circumstances can help a business prepare. Testing for best- and worst-case scenarios can determine how best to pivot to ride the wave of change or identify necessary strategic adjustments.
Embedding Responsible Practices
As adoption accelerates, boards are under growing pressure to balance innovation with control. Embedding responsible practices early is now central to sustaining trust, mitigating risk, and realizing the full value of AI investments.
Those who hesitate risk not only compliance but their very relevance in a landscape where innovation and integrity must coexist. Boards that act now to strengthen oversight will be better positioned to navigate compliance and avoid costly last-minute adjustments.
Summary
Leading through uncertainty will be challenging. By focusing on the most critical insights across the AI lifecycle and asking key questions to help shift ingrained thinking, boards can help anticipate the “what ifs” and embed rigor in governance, ensuring businesses aren’t derailed by disruption.
The age of AI agents managing other AI agents is here. However, the role of humans has never been more powerful. By challenging management on execution plans and prioritizing data governance, boards can create a culture of transparency and responsibility, bridging the gap between strategic intent and operational execution.
