Artificial intelligence is rapidly moving from experimentation to organisation-wide adoption, creating both significant opportunities and new governance challenges.

As AI becomes embedded across business operations, boards are playing an increasingly important role in overseeing major technology investments, managing emerging risks, and supporting responsible and effective AI use.

In this episode, Professor Nicholas Davis, Co-Director of the UTS Human Technology Institute, shares what effective AI governance looks like in practice.

The conversation explores how boards can align AI initiatives with strategy, assess return on investment, and address the risks of "shadow AI" use by staff. It also examines the rise of agentic systems, the implications for oversight, and the level of AI literacy directors will need to govern with confidence.

We cover:

• (04:30) The core questions directors are now asking about AI
• (08:00) Why measuring the return on investment from AI initiatives is challenging
• (10:30) The level of AI literacy required at the board level
• (13:00) Understanding the hidden risks of shadow AI
• (21:30) How to govern AI agents and systems
• (27:40) The three questions every director should be asking management about AI today

Learn more:

• AICD & HTI's new AI Governance Guide - https://www.aicd.com.au/news-media/research-and-reports/a-directors-guide-to-ai-governance

Connect:

• Nicholas Davis on LinkedIn - https://au.linkedin.com/in/nicholasjdavis
• AICD on LinkedIn - https://www.linkedin.com/school/australianinstituteofcompanydirectors/
• Kulja Coulston on LinkedIn - https://www.linkedin.com/in/kulja-coulston/
• Bennett Mason on LinkedIn - https://www.linkedin.com/in/bennett-mason-10517336/

This episode of Director Download was produced on the traditional lands of the Gadigal people. We recognise First Nations peoples' cultural and spiritual relationships to the Skies, Land, Waters, and Seas, and their rich contribution to society.