LEADERSHIP INSIGHTS

There are significant questions in relation to AI governance and how the technology can be best utilised for each individual business case, combined with fears that big bets are being made hastily. This theme of hype, reality and potential was explored at Criticaleye’s recent Leadership Retreat, held in Partnership with AlixPartners, Palo Alto Networks, Hitachi Solutions and Workday.
 

Leadership teams and Boards are certainly exploring the possibilities that AI can bring to their businesses. When the audience was given a word cloud at the Retreat which asked them to identify the biggest way to improve organisational performance, one of the dominant answers was ‘AI’. Matthew Blagg, CEO of Criticaleye, commented: “Technology remains an enabler of the business strategy and it’s important for executives and Boards to see it in the context of the bigger picture.
 

“The pace of innovation and the blistering speed at which markets can be disrupted means that senior leaders have something of a duty to step back and discuss what impact this technology could have on business models, both in terms of risks and opportunities. It certainly can’t be ignored or pushed down into the organisation.”
 

Shefaly Yogendra, NED at Temple Bar Investment Trust and a Board Mentor at Criticaleye, emphasised the need to implement AI for the right reasons. “If you're doing it [Generative AI] because you have FOMO, then that's probably not the right thing,” she said. “But it is worth asking the question, ‘If you didn't have this tool, what problems would you be solving?’ And then ask the question, ‘Is this [Generative AI] the right way to approach solving those strategic problems?’”
 

Feiyu Xu, a NED at Airbus and another Criticaleye Board Mentor, explained the ways in which AI can have a positive impact .“First, AI can help many companies to improve their products, make existing products more intelligent and develop new intelligent products. Second, AI can help to improve manufacturing and enterprise processes — for example, managing geopolitical changes around supply chains, demand forecasts and logistics networks. In addition, Generative AI is often useful for contract management. 

“The third perspective is developing new business models. Increasingly, companies recognise that if they have data-driven digital solutions, they can achieve more recurring revenue with the latest solutions, so their business model will change.”
 

However, Feiyu warned that leaders must have a competent grip of the AI ecosystem and value chain before investing significant sums, as well as a solid data platform underpinning the whole enterprise. “You have to know which kinds of data you own, which kinds of data you produce and which data you need to access — above all the legal framework to obtain consent. Without data-access consent, we can neither leverage data for continuous improvement nor develop new data-driven products or services.”

 

  

*Responses taken at Criticaleye's Leadership Retreat 2025

Risk on Steroids

Data governance is just one aspect of an increasing AI risk matrix for businesses, which also includes workforce disruption and cyber security. Tim Erridge, Vice President of Services EMEA & Managing Director Unit 42 at Palo Alto Networks, discussed the growing threat of cyber: “Every organisation in the UK and around the world is racing to try and realise the benefits from AI. It's a new wave of digital revolution.
 

“But in that race, you're establishing a new attack surface and also, more worryingly, there's a shadow AI attack surface spinning up. Every single point in your extended supply chain, in your extended digital ecosystem, is a point of attack that may be leveraged by an adversary.”
 

Clearly, the benefits of AI implementation need to be carefully balanced with the potential risks, which adds extra onus on Board members shining a spotlight on areas such as cyber security in the time spent with executive teams. Shefaly said: “When you take the combination of enterprise technology related issues and cyber risk arising, with AI bringing all of that into focus and on steroids, you're dealing with a lot of complexity.
 

“Board directors have to remember they have five minutes probably to ask questions about cyber in a three-hour Board meeting. How do you make those five minutes count? That requires Board directors to be more than physically present in the meeting, but psychologically present.”

Ultimately, it boils down to how businesses can use this technology to improve performance and drive competitive advantage, layering on robust AI governance and a strong lens on the growing risk agenda. Feiyu summarised: “I believe that AI itself is not a hype. AI is reality. AI will become part of the evolution of our industry and belong to the next industrial revolution. However, if we do not build up AI governance and an AI strategy, and ensure that the development of AI applications is carried out in a sustainable and scalable way, then every AI investment in your company will become mere hype.”


Jacob Ambrose Willson, Senior Editor Criticaleye