Using AI for learning governance

Recent Company Directors Course graduate Keirin Joyce GAICD embraces AI to more efficiently address his director responsibilities.

A director can strategically use a large language model (LLM) application such as Gemini, ChatGPT and Claude, but with significant caution and awareness of the limitations. LLMs are tools and like any tool, their effectiveness depends on how they’re used. They can support, but not replace, director judgement. This breakdown of potential uses and cautions keeps sound governance principles front of mind.

Potential uses

Research and analysis: LLMs can quickly summarise large volumes of information like industry reports, competitor analyses or regulations and regulatory updates.

Example: A director preparing for a board meeting on cybersecurity could use an LLM to summarise recent data breaches and best practices, saving time and allowing for deeper analysis.

Risk assessment: LLMs can help identify potential risks by analysing news articles, social media sentiment and market trends.

Example: A director concerned about reputational risk could use an LLM to monitor public perception of the company and identify emerging issues.

Strategic planning: LLMs can aid brainstorming, and explore different strategic options by generating ideas and analysing potential outcomes.

Example: During a strategic planning retreat, directors could use an LLM to explore different market entry strategies and their potential impact on the company’s financials. This can contribute to better strategic decision-making.

Drafting and communication: LLMs can help draft board resolutions, presentations or internal communications, improving efficiency.

Example: A director could use an LLM to draft a communication to shareholders about the company’s performance, ensuring clear and concise language.

Training and education: LLMs can provide personalised learning experiences for directors on specific topics related to governance, compliance or industry best practices.

Example: A new director could use an LLM to access curated resources and quizzes on director duties and responsibilities.

Useful operating tips

Give the LLM as much context as you can: “The XYZ Company (XYZC) is a leading Australian speciality manufacturer and seller of a range of high-quality personal care products. XYZC has a reputation for being a trusted brand.”

Ask it to “Give examples” to enable you to link the LLM’s answer to your thoughts and ensure it understood what you were asking for.

To get good at it, pull out some questions from your CDC practice exams and punch them in. Then use a few situations from your last set of board minutes. See if the answers align with what the board discussed, considered and did. 

Try out different LLMs to see which interface you interact best with. I use Gemini.

Cautions

Accuracy, bias and completeness: LLMs can generate incorrect or biased information. This may also be incomplete or out of date, for example, not capturing recent regulatory changes. Directors must always critically evaluate the output. The AICD emphasises the importance of independent judgement, which cannot be outsourced to an LLM.

Confidentiality and data security: Sharing sensitive board information with an LLM poses security risks. Directors must be aware of the LLM provider’s data-handling policies and ensure compliance with relevant regulations. The corporation could also explore bringing an LLM in behind their own firewall.

Over-reliance: Can lead to a decline in directors’ analytical and critical thinking skills. Directors need to actively engage in the decision-making process, not delegate it to AI.

Lack of context and human judgement: LLMs lack any real-world experience and understanding of nuanced situations. They cannot replace human judgement, especially in complex ethical or strategic decisions. Effective board leadership requires experience and sound judgement.

Accountability: Directors are ultimately accountable for their decisions. Using an LLM does not absolve them of this responsibility.

This article first appeared under the headline 'A helping hand' in the July 2025 issue of Company Director magazine.