Are you as a board member actively enabling AI orientation in the firm?
Artificial intelligence (AI) is no longer an emerging trend or a niche concern for tech teams - it’s a strategic imperative. As AI reshapes industries, value chains and decision-making processes, boards of directors must take a more active role in enabling AI orientation across the firm. Yet many boards find themselves stuck and recognize AI’s importance but are not yet equipped to guide their companies through AI-driven transformation.
Emilia Axelsson and Marion Lindström, two newly graduated master students in Digital Leadership from the University of Gothenburg, have examined how boards of directors enable AI orientation in firms. While conducting various semi-structured interviews of board members in different firms and sectors, there was a clear standpoint; the interest and intentions are high to enable AI orientation in the firm, but the actions remain fragmented. How can boards successfully equip themselves with the tools, competences and resources needed to successfully enable AI orientation in the firm? Based on the research with Swedish board members, the research identified three actions that boards need to take to move from awareness to leadership in the age of AI.
Make AI competence a collective responsibility
Most boards we interviewed acknowledged AI’s strategic potential but felt underprepared to oversee it. In many cases, one tech-savvy member carried the weight of AI discussions, while others disengaged. This approach isn’t sustainable, since it creates knowledge silos, limits collective decision-making, and increases the risk of overlooking critical ethical, strategic, or regulatory aspects of AI implementation.
Recommended actions for boards
● Ensure that every board member gains a basic understanding of AI’s opportunities, risk and regulatory implications.
● Invest in collective learning through workshops, expert sessions, or AI-focused board education.
● Avoid delegating AI to a “tech corner” and instead integrate it into full-board strategic conversations.
Prioritize AI as a long-term value driver and not as a pilot project
Several boards supported AI initiatives but often without a clear long-term strategy or structured follow-up. Projects were approved, but without defined goals, evaluation criteria, or integration into broader business transformation. As a result, AI remained a side activity, a promising concept, but disconnected from core value creation. Without strong board-level prioritization and direction, these initiatives risk losing momentum or failing to deliver lasting impact.
Recommended actions for boards
● Treat AI as any other major transformation with business cases, follow-up, and clear ownership.
● Set long-term goals for how AI should create value in the organization.
● Ask not just if the company should invest in AI, but where, when, and why.
Enable change by adjusting leadership roles and culture
Even when boards initiate AI projects, they often fail to follow through with the structural changes required to make them successful. Organizational culture, leadership roles and governance processes are rarely adapted to support AI integration, which leads to stalled progress and missed opportunities. Without aligning structures and ways of working with AI-related goals, initial efforts struggle to gain traction or scale.
Recommended actions for boards
● Signal clearly that AI is a strategic priority, both in words and resource allocation.
● Embed AI responsibilities into leadership roles and decision-making structures.
● Foster a culture of experimentation, continuous learning, and collaboration across functions.
From passive oversight to active transformation
AI is reshaping how organizations operate, compete and create value. But without active and capable board engagement, much of its potential will remain unrealized. As a board member, you have the possibility to contribute in enabling AI orientation in the firm, not by becoming a technical expert, but by driving strategic direction, fostering competence and ensuring that structures support long-term transformation. Boards that act now will not just adapt to change, instead they will help lead it.
Executive Summary
As artificial intelligence (AI) becomes an increasingly important driver of innovation and competitiveness, companies must adapt strategically and organizationally. This study investigates how boards of directors in Swedish companies engage in enabling AI orientation, that is, the strategic integration of AI into leadership, governance, and organizational culture, using the Dynamic Capabilities framework. The framework focuses on three core capabilities: sensing (identifying and interpreting technological opportunities and threats), seizing (mobilizing resources and making strategic decisions), and reconfiguring (adapting structures, processes, and culture to support transformation).
Based on qualitative interviews with board members across various industries, the study finds that while AI is widely recognized as strategically important, many boards lack the competencies and structures needed to effectively drive AI transformation. Sensing is hindered by knowledge gaps and the absence of systematic learning. Seizing is constrained by unclear ownership and cautious resource allocation. Reconfiguring remains largely symbolic, with few concrete structural or cultural changes in place to support long-term AI integration.
However, some promising developments are emerging. A number of boards are investing in AI literacy, establishing dedicated task forces, and aligning AI efforts with long-term strategic goals. The findings suggest that boards must move beyond passive oversight and instead develop dynamic capabilities that enable proactive, informed, and strategic engagement with AI.
This research contributes to the field of AI governance by highlighting the critical role boards play in fostering organizational adaptability and strategic transformation. It also offers practical insights into how boards can strengthen their involvement through continuous learning, clearer governance structures, and cultures that support innovation to ensure long-term competitiveness in an AI-driven business landscape.