The stories at the intersection of trust and technology often focus on negative outcomes: the audio deepfake of a CEO’s voice in a call to the company’s board, or a cloud security breach that potentially compromised personal data.
But what about the tremendous opportunities that present themselves when we embrace innovative technologies? Technology-savvy companies are changing their business models by using AI to speed up product development, save money, develop employee opportunities, and navigate uncertainty—and countless companies are dramatically increasing their efficiency, security, and transparency through blockchain networks, thus fortifying stakeholder confidence. These stories and the resulting long-term value creation are compelling and impactful.
As the 2024 Edelman Trust Barometer wisely notes, “the acceptance of innovation is essential to the success of our society.”
We couldn’t agree more.
As cochairs of the National Association of Corporate Directors’ 2024 Blue Ribbon Commission on Board Oversight of Technology, we and 22 other board leaders are developing governance best practices and resources to help shape boards’ oversight of the value-creating potential—and risks—of technology. Our report will inform investors and policymakers about the steps boards are taking to earn the trust of their customers and communities.
Boards must be “responsibly courageous” by educating themselves, taking the long view when it comes to technology adoption and investment, and assuming a central role in rapidly engaging stakeholders. This includes the full range of generative AI tools—beyond ChatGPT—as well as game-changing technology: data, blockchain, and cloud networks; augmented reality; and more.
For every challenge that technology creates, there are opportunities as well. The trick is understanding what matters most to the business strategy, so that boards can begin to harness new technologies to their advantage. To paraphrase Gen. Omar Bradley, U.S. Army, a board’s role is to help management navigate by the stars, not passing ships.
Every company uses technology to create value, yet the most important product those companies offer is trust. Boards that are transparent about how they govern technology and remain vigilant in upholding the company’s values and principles—no matter what new technology is around the corner or what associated regulations are in place—instill stakeholder confidence.
We look forward to releasing our full report later this year. In the meantime, NACD offers a host of resources to aid boards in their digital and tech transformations and ultimately, to build trust.
