Black Directors Cohort and Nom/Gov Committee Directors on AI, Sustainability, and Inclusion

NACD Northern California gathered its Black Directors Cohort and Nom/Gov Committee Directors to discuss AI, Sustainability, and Inclusion. 

A special thanks to Ahmad Thomas for sharing his insights with us and leading the conversation, as well as the EY team for their contributions to the dialogue – moderator Robyn Bew, and Donoghue Clarke, Phillip Mazzie, and Aaron Ow-Yeang. Please find a few key takeaways below:

Artificial Intelligence

• Authentic Commitment: Boards must demonstrate a genuine commitment to understanding and utilizing AI if they are going to be able to provide effective oversight of this fast-moving technology, so that management’s AI strategy will enable the company to remain competitive.

• Policy Environment: Understanding the transformational and social impacts of AI is essential. California is setting the pace for AI legislation, and states are watching closely. Federal policies may take a more hands-off approach under the incoming administration. Boards must stay informed about AI policies at both the federal and state levels, especially California's leading role in AI policy. 

• Workforce Displacement: AI could disproportionately impact marginalized communities, but also presents opportunities for innovation. Shorter courses for roles like AI human oversight can help shift workforce dynamics.

• AI Guardrails: Establishing principles early on for AI is critical to managing risks effectively as a board.

• Company Data: Companies investing in their data and ensuring good hygiene now will have a competitive advantage when integrating AI.

• Ongoing Education: Staying updated on AI is crucial, and there are free online courses available to ensure board members remain knowledgeable.

Diversity, Equity, and Inclusion

• Backlash on DE&I: The current political environment may intensify the backlash against DE&I initiatives. Leading companies are aligning their DE&I efforts with tangible business benefits, such as retention and profits, to continue their momentum.

• Courageous Leadership: Board members need to take bold actions in advancing DE&I, not fearing that a more diverse board will replace them.

• Culture of Inclusion: Building a culture of inclusion and belonging goes beyond skin color and gender. Board leaders should shape the company’s values, which are central to its success.

• Meritocracy and Diversity: It's important to make sure people understand that meritocracy and diversity can coexist—both are essential for a thriving organization.

• Board and Executive Diversity: Having a diverse board but a lack of diversity at the executive level presents a gap. Regular town halls and showcasing diverse talent from all levels of the company can help address this.

• Diversity Goals and Accountability: Set clear goals for diversity, and ensure management has created a talent pipeline with incentives to meet these objectives.

• Critical Questions for Boards: Boards should ask why diversity matters and how it aligns with the company’s mission. They should also evaluate hiring practices to ensure they aren’t limiting their pool to traditional top-tier universities.

• Dynamic Language Around Diversity: Review and adjust the language around diversity within the company frequently to ensure inclusivity is fostered across all levels.

• Mentorship and Reverse Mentorship: Quarterly meetings with rising diverse stars can provide not only a platform for them to improve, but also provide the board members with valuable insights into the business and help them stay connected to on-the-ground developments, such as AI.

Thank you to our generous sponsor for hosting this event: