How boards govern GenAI adoption
Boards turn to reskilling and outside partners as AI reshapes work
Companies deploying generative AI are more often responding to displaced work by hiring specialist talent or retraining employees than by cutting jobs, according to research from INSEAD Business School.
The survey of directors at 83 predominantly European and U.S. companies found that nearly half said AI had already displaced tasks or roles. However, only 11% reported reducing headcount because of the technology.
Among companies where AI had displaced work, 57% said they were prioritising hires with AI skills, while 40% were reskilling or redeploying existing staff. Just 16% said headcount reductions were a priority.
The findings suggest that boards are treating workforce changes from AI as an organisational capability issue rather than solely a cost-cutting opportunity, although the survey does not specify the sectors, company sizes or scale of job changes involved.
Companies reported early productivity gains from their AI programmes. Nearly half described the impact as moderate, while 18% said the effect had been significant or transformational.
Directors also identified their own understanding of AI as a major obstacle to effective governance. The result points to a growing need for boards to build technical expertise as they oversee decisions involving workforce deployment, risk and investment in the technology.
Most companies are seeking external support for adoption rather than developing all capabilities in-house. The INSEAD research found that 54% were working with AI vendors, 24% were building alliances or broader ecosystems, and 6% were coordinating their own AI ecosystems. Only 5% said they were pursuing adoption entirely independently.