How boards can strengthen AI oversight and governance Monday, 01 June 2026 Content Content Current Despite the opportunities, many boards are now wary of the rising governance and security risks posed by shadow AI. Presented by Nasdaq Governance Solutions Artificial intelligence is now widely regarded as a board-level concern. Not only as a driver of productivity and insight, but as a growing governance and security risk. Boards across Australia are increasingly expected to oversee how AI is used across the enterprise – and the gap between adoption and oversight is where risk is beginning to concentrate. One of the most consequential developments is the rise of shadow AI where such tools are used outside approved systems and governance frameworks. In practice, it often looks harmless. For example, a scenario may include a director pasting draft disclosures into a public AI tool to refine language, or summarising papers ahead of a meeting. These actions are typically driven by time pressure and efficiency, not by any intent to breach policy. The issue is the sensitivity of confidential board information. Once information leaves a governed environment, organisations and directors lose visibility over where data is stored, how it is retained and whether it may be reused to train external models. IBM’s 2025 Cost of a Data Breach report found that 13 per cent of organisations have experienced breaches involving AI systems, with 97 per cent of those affected lacking proper AI access controls. In addition, 60 per cent of AI-related incidents resulted in compromised data, with nearly one-third leading to operational disruption. IBM links ungoverned systems to a higher likelihood of breach risk and higher costs. Australia’s leading magazine for directors Delivering timely insights, expert perspectives and practical guidance for today’s boards. View latest edition Governance-focused AI For boards, an important consideration is that responsible AI governance is closely coupled with cybersecurity and fiduciary oversight. It may no longer be enough to govern AI at the enterprise level while directors rely on unsecured tools themselves. This is where governance-focused AI matters. Nasdaq Boardvantage® AI for Boards is built for the boardroom, designed to support secure AI workflows within a protected, audited and role-based environment. Board-level AI capabilities such as document summarisation and minutes drafting are embedded within the platform that many directors already trust, while reducing the risk of exposing sensitive information to open or uncontrolled models. Backed by Nasdaq’s enterprise-level security controls and our strategic partnership with Microsoft, Boardvantage AI for Boards can help boards to adopt AI with greater confidence and enhanced security – and to support their governance objectives. Learn more Governance in the future Corporate governance Latest news article 10 Jun 2026 Key lessons for listed company boards from three important court decisions on disclosure article 10 Jun 2026 Seven steps to a successful start as a director and the missteps to avoid article 10 Jun 2026 Gender gains mask deeper diversity gaps article 05 Jun 2026 Data centre-powered growth This is of of your complimentary pieces of content Access this content Already a member? Login to view this content Log In This is exclusive content. You have reached your limit for guest contents. The content you are trying to access is exclusive for AICD members. Please become a member for unlimited access. Access this content Already a member? Log In