Why Boards and Executives Must Act Now on AI – Before Trust and Control Are Lost.
By Patrick Upmann | Founder of AIGN & Publisher at Global Trust Label. Expert in AI Governance & Ethics.
The New Reality: AI Makes Decisions – Instantly, Powerfully, and Often Without Oversight
Artificial Intelligence is no longer a promise of the future—it is the driving force of the present. And it’s transforming our world: silently, rapidly, and often invisibly.
Across industries, AI systems are taking over tasks once handled by humans. But more than that, AI is now making the actual decisions.
- In credit scoring, algorithms decide in milliseconds who gets approved—and at what interest rate.
- In recruiting, AI systems screen, score, and sometimes reject applicants—without any human ever reading the résumé.
- In the energy sector, AI controls price signals, load balancing, and grid stability.
- In insurance, AI determines whether claims are approved—and how fast.
- In healthcare, AI suggests diagnoses, treatment plans, or risk alerts—impacting lives in real time.
These systems operate autonomously, at scale, and in real-time—with serious consequences for people, markets, and society.
So here’s the question: Who is accountable for these decisions?
In far too many companies, the honest answer is: 👉 No one on the executive board. No one in the supervisory board.
AI is often seen as an IT or innovation issue—but not as a matter of corporate leadership. And that’s precisely where the real risk begins.
The Strategic Blind Spot: AI Is Reshaping Business – But Leadership Is Not Catching Up
Artificial Intelligence is not a niche tool or a passing trend. It is a core driver of business transformation. The numbers speak for themselves:
- 84% of Fortune 500 companies are actively investing in AI technologies (McKinsey, 2024)
- 87% of global CEOs identify AI as critical to their company’s competitiveness (PwC CEO Survey, 2024)
- $1.3 trillion in annual economic value is projected from generative AI alone by 2030 (Goldman Sachs, 2024)
And yet—where is the leadership?
- Only 13% of global enterprises have established formal AI governance at the C-level (BCG AI Governance Report, 2024)
- Fewer than 5% of DAX supervisory boards include any AI expertise
- In over 70% of board meetings, AI is not even a recurring agenda item (AIGN Insight Panel, 2024)
This is not just a gap in governance. It is a strategic blind spot. And one with escalating risks:
- AI systems are making decisions that affect customers, citizens, regulators, and investors.
- Misalignment between tech deployment and leadership oversight creates legal, ethical, and financial liabilities.
- The next crisis of trust will not come from a lack of innovation—but from a lack of accountability.
If AI drives core value creation, then AI governance must be core leadership responsibility. There is no “AI strategy” without an AI accountability structure at the top.
Because when machines decide, leaders must govern.
The Use Cases: AI Is Deeply Embedded in Core Business – With Little Oversight
📌 Insurance
Over 70% of claim decisions at major insurers are now made using AI. → Who ensures fairness, compliance, and transparency?
📌 Energy
AI sets prices, balances loads, and manages supply chains. → What happens when algorithms create price shocks or fuel inequality?
📌 Retail & Platforms
Amazon generates roughly 35% of its revenue through AI-powered recommendations. → Who is accountable when these algorithms become manipulative or dangerous?
📌 Human Resources
AI systems increasingly manage hiring and candidate screening. → Who checks whether these systems are biased, explainable, or lawful?
Bottom line: When AI shapes business outcomes, governance can no longer be delegated to project teams. It must be owned by the board and the executive leadership.
The Boardroom Gap: AI Shapes the Future – But Most Boards Are Absent
Corporate boards are expected to safeguard long-term value, ethics, and risk governance. But when it comes to AI, most boards are alarmingly disengaged.
Let the numbers speak:
- Less than 5% of supervisory boards globally include proven AI expertise
- Over 70% of board agendas in AI-active companies do not regularly address AI governance
- Only 11% of global board members say they understand the ethical and legal risks of AI deployment (AIGN Board Readiness Pulse, 2024)
Meanwhile, AI is already:
- Deciding who gets hired, financed, insured, or prioritized
- Influencing customer behavior, pricing models, and even societal norms
- Driving exposure to regulatory scrutiny under frameworks like the EU AI Act, GDPR, DORA, and NIS2
And still—AI oversight remains unassigned. Unstructured. Unacknowledged.
This is not just negligent. It is a failure of governance in the most literal sense.
Let’s be absolutely clear: ▶ AI is not an IT issue. It is a matter of corporate integrity, accountability, and long-term strategy.
Boards must act decisively:
- ✅ Assume ownership of AI accountability—no more outsourcing it to middle management
- ✅ Create formal oversight mechanisms—before reputational, legal, or societal damage occurs
- ✅ Establish an early warning system—to flag bias, black-box decisions, and compliance risks in real time
Because if AI is shaping the rules of tomorrow’s economy, then boards must shape the rules of tomorrow’s governance.
This is not a technical upgrade. It is a leadership evolution.
Why Responsibility Is Now a Leadership Imperative
1. AI Creates New Systemic Risks
- Algorithmic discrimination
- Flawed decisions based on biased or incomplete data
- Reputational harm due to black-box systems
- Regulatory penalties (e.g., EU AI Act: up to 7% of annual turnover)
2. AI Influences Rights and Society
- Predictive policing, social scoring, emotional manipulation by large language models → Corporations are becoming actors in the public sphere—like it or not.
3. Lack of Governance Destroys Trust
- Customers demand fairness.
- Investors demand clarity.
- Employees demand protection.
Only executive leadership can define the structures, culture, and accountability needed.
What Boards and Executives Must Do Now
✅ 1. Assign AI Governance Responsibilities at the Top With access to strategy, risk, and ethics—not just operations.
✅ 2. Build AI Competence Across the Board Training for all members; bring in independent AI expertise.
✅ 3. Integrate AI Into Risk, ESG, and Strategy Processes AI risks belong in the risk committee; societal impact belongs in sustainability reports.
✅ 4. Establish an AI Ethics & Governance Committee As an early warning system, policy lab, and control mechanism.
✅ 5. Make Responsibility Visible—Internally and Externally Because trust isn’t built with slogans. It’s built with verifiable structures.
Visibility Through Standards: The Global Trust Label
What’s missing today is a clear, credible benchmark for responsible AI. A standard that signals: “We take AI governance seriously.”
That’s why we created the Global Trust Label – Certified for Responsible AI:
- A visible, public recognition for AI accountability
- No technical hurdles – immediately accessible
- Access to the global AIGN network
- Trusted by customers, investors, partners, and media
- Optional audit after 12 months to achieve “AIGN Verified” status
👉 The label isn’t a trophy. It’s a leadership commitment.
Conclusion: AI Changes Everything – But Responsibility Remains Human
AI is powerful. But power without governance is not innovation—it’s a risk.
Governance is not a bottleneck. It’s the foundation for sustainable trust.
▶ Now is the time to stop demanding responsibility—and start leading it. ▶ Not from the IT department—but from the boardroom.
AI changes everything. But responsibility starts at the top. In the board. In the C-suite. In your hands.
Ready to Lead – Not Just React?
The era of artificial intelligence demands more than innovation. It demands governance, courage, and visible leadership.
If you’re a board member, executive, or advisor asking:
- How do we establish real AI accountability at the top?
- How can our company earn trust in AI—before it’s too late?
- Who can guide us in making responsibility visible and actionable?
Then it’s time to partner with those who lead the global conversation.
✅ Request a board-level consultation with AIGN – and gain strategic clarity on AI governance
✅ Apply for the Global Trust Label – Certified for Responsible AI – and make your leadership visible
✅ Join the AIGN Group – the world’s AI governance & ethics network, now spanning 50+ countries
Because responsible AI is not a trend. It’s the future. And leadership begins with the first visible step.