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From Risk to Responsibility: Infosys Outlines the Board’s Role in Enterprise AI Oversight

Infosys has published new research, Enterprise AI: The Board’s Role in Strategic Governance, focused on corporate directors and their role in enterprise AI strategy, oversight and risks. The report was launched at the NACD Directors Summit™ in Washington D.C. today.

AI has quickly expanded across the enterprise, touching everything from customer service to product development and employee productivity. AI is emerging as a core enabler for the way companies operate and create value. As AI becomes more embedded in the enterprise, AI governance will need to catch up and keep pace. This heightened need for oversight has elevated AI from an occasional topic in boardroom briefs to frequent strategy sessions.

However, more frequent AI discussions when the boards convene are far from enough. The research reveals gaps in enterprise-wide AI strategies and how boards hold directors and their executives accountable for AI initiative outcomes. At the same time, over half of boards take a passive, supervisory approach to AI oversight, while acknowledging their heightened fears of AI-related risks. These mismatches signal an evolving governance landscape for strategy and operation.

The need to modernize governance frameworks and increase oversight is clear. Yet, research has found board responses often lag what experts consider best practices.

Leading boards are already repositioning themselves for the transition to enterprise AI by moving beyond passive risk monitoring. These progressive directors adopt stronger governance practices, from routine strategic updates to dedicated AI advisory committees. These measures enable boards to anticipate emerging threats without becoming entrenched in operational execution. The report outlines a clear set of actions for corporate directors to strike this essential balance and reposition corporate governance in the transition to enterprise AI:

  • Evolve strategic oversight: Directors should press leaders to build regulatory and ethical guardrails directly into the design, development and operation of AI systems now, not later. Embedded compliance ensures AI systems have real-time monitoring, automated compliance checks and comprehensive audit trails.
  • Unify AI strategy: Department-led initiatives may enable quick wins but invite duplication, integration issues and governance gaps. The research shows that companies with unified AI oversight and strong executive sponsorship are more likely to realize business value. Board-led approaches ensure alignment, consistent standards and responsible use at scale.
  • Hold management accountable: Boards must push management to deliver measurable value, aligned to shareholder value, from AI initiatives. This includes defining AI KPIs and tying them to executive performance metrics. This approach ensures AI initiatives are measured and contribute to company success.
  • Address AI threats: Boards need to confront AI risks such as misinformation proliferation and privacy violations to minimize reputational harm. This involves conducting risk assessments, implementing robust mitigation strategies and ensuring AI-related incidents are included in crisis communication protocols.
  • Prioritize responsible AI practices: A company’s use of AI should align with societal expectations, including fairness, accountability and human impact. Boards can achieve this by overseeing societal impact assessments and moving societal consideration to the center of AI strategy.

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