How boards can ensure AI delivers measurable value

Monday, 01 December 2025

    Current

    Artificial intelligence (AI) is reshaping industries and redefining governance. At a director roundtable hosted by SAP and the AICD — A global perspective on AI in the age of digital disruption and opportunity — discussion centred on how boards can balance innovation with accountability and ensure AI delivers measurable value. Drawing on SAP’s global experience and culture of evolution, the session underscored that success in digital transformation depends on trusted data, adaptable culture and decisive leadership.


    Presented by SAP

    Angela Colantuono GAICD, President and Managing Director of SAP Australia and New Zealand, opened the roundtable, noting directors are meeting at a moment of significant disruption. Colantuono said AI was no longer a distant prospect, but an active force influencing markets, reshaping industries and redefining what good governance looks like. “AI is here, now. It is transforming how we work and what we are accountable for.”

    For boards, she flagged the challenge as balancing opportunity with accountability by ensuring investment decisions, risk frameworks and oversight structures evolve at the same pace as technology.

    Colantuono framed the discussion around three questions that boards everywhere are asking:

    Where can AI create the most meaningful competitive advantage?

    How can it be harnessed responsibly with trust, ethics and compliance at the centre?

    How can transformation move beyond technology projects to deliver genuine outcomes for shareholders, employees and society?

    “These are not technical questions,” she emphasised. “They are governance questions and they belong in the boardroom.”

    Drawing on SAP’s experience working with many of the world’s pioneering organisations, including several hundred in Australia, Colantuono said the company had a unique perspective on how directors are shaping the conditions for success. “We are seeing how boards can steer through disruption while finding new sources of opportunity.”

    What is top of mind for global leaders?

    When asked what global CEOs and boards are focused on right now, Peter Maier, SAP’s Senior VP for Strategic Customer Engagements, Office of the CEO, said that the agenda had fundamentally shifted. “It is no longer about IT projects. It is about delivering real business outcomes faster and with fewer resources.”

    At the top of that agenda is profitable growth that can withstand disruption, supported by resilience and adaptability. AI is central to this change. “AI is not here to kill, but to create new business,” said Maier. “You need to be able to explain why you are not using AI.”

    Directors honed in on the human side of change, noting that Australia’s pipeline of AI leadership talent is still emerging. They questioned how organisations can build the skills, confidence and capability required to lead through disruption, while ensuring the next generation of leaders understands both the technology and its broader governance implications.

    Maier explained that while many boards understand the strategic importance of transformation, they often underestimate what it takes to make it succeed. “Technology is the easy part,” he said. “It is the human factor that is hardest to get right.”

    He pointed to cultural change and active change management as essential foundations. “You need people who are ready to work differently, to collaborate across silos and to keep learning as the organisation evolves.”

    Other boardroom priorities include reskilling and empowering talent, strengthening data management and cyber resilience, and increasing supply chain visibility. Above all, said Maier, leaders must move with speed and focus on their strengths, while partnering where they are weaker, to accelerate transformation.

    He stressed that successful transformation is no longer measured in years, but in quarters.

    “The pace of change is relentless. You need to take risks, build on your heritage but keep moving forward.” Transformation, he added, is continuous, not a one-time event, but a cycle of adaptation and renewal.

    Maier also noted the importance of data readiness, which several other participants strongly endorsed. “Transformation depends on trusted, integrated and well-governed data. Without that, it is impossible to make fast or informed decisions.”

    Questions from directors

    Directors guided the conversation to consider how boards can navigate innovation, measurement and leadership in the AI era.

    • Are regulation and regulatory oversight stifling innovation or helping to shape responsible progress?
    • What does measurable productivity really look like and how should boards track it?
    • How can directors ensure board minutes translate into real industry insights and actionable outcomes?
    • With the pipeline of AI leadership talent still developing in Australia, how can organisations build the skills and confidence needed to lead this transformation?

    Lessons from Silicon Valley

    Directors at the roundtable raised questions about how boards can meaningfully measure and monitor progress in the age of AI-driven transformation. Some queried what “measurable productivity” really looks like — and how directors can ensure that performance metrics capture genuine improvement rather than superficial efficiency gains.

    Luke Nixon, Head of Product Growth at SAP Research and Innovation, said Australian companies can unlock greater innovation by adopting some of Silicon Valley’s cultural traits. “In the Valley, customer-centricity comes first,” he said. “Lean startup principles encourage constant iteration with customers and building trust early.”

    This mindset, combined with a focus on product management and engineering, allows innovation to move from idea to impact at speed.

    Nixon said boards play a vital role in enabling that progress, particularly when it comes to AI. “Directors should be pushing their executive teams. Are you set up to make the most of your investment? How are you building trust and experience across the organisation?”

    These questions, he added, help to ensure AI delivers value beyond experimentation.

    Nixon said SAP’s presence in Silicon Valley has long been central to its global strategy. “It was a visionary decision by our founder, Hasso Plattner, to move into one of the most expensive locations in the world back in 1993. He understood the importance of being part of the ecosystem.”

    He explained that this positioning enables SAP to combine the agility and creativity of startup leaders with the depth of enterprise expertise in Germany and operational excellence from its global labs, driving sustained product leadership.

    SAP’s tips for directors on leading transformation

    For directors guiding organisations through change, the message is simple — transformation is continuous and demands clear, adaptable leadership.

    Treat transformation as ongoing

    • Keep iterating, adapting and evolving.

    Balance heritage with progress

    • Honour the past, but keep moving forward.

    Lead early and decisively

    • Embed AI into every process, not just pilots.

    Use data as an asset

    • Make it trusted, connected  and governed.

    Build an empowered, agile workforce

    • Encourage people and technology to work together.

    Break down silos

    • Build networks and collaborate across ecosystems.

    Target quick wins

    • Reduce friction and embed AI where it adds immediate value.

    Keep it simple

    • Work with trusted partners under clear governance.

    Plan for change

    • Develop a focused AI strategy and make adaptability part of your DNA.

    Turning talk into transformation

    The key difference between companies that talk about transformation and those that actually achieve it lies in mindset and execution. “It starts with leadership,” said Maier. “Successful organisations act early, take ownership and drive transformation as a business priority, not as an IT initiative.”

    He noted that transformation must have AI embedded in every process, rather than it be confined to pilot programs. “AI cannot sit in isolation — it has to be part of the core.”

    Maier also emphasised the importance of treating data as a strategic asset.

    “Trusted, connected and well-governed data underpins everything.”

    He said the companies that thrive are those with an agile culture. They are companies which view transformation as continuous rather than as a one-off project. Success increasingly depends on collaboration. “It is about human and machine synergy, empowered teams and connected ecosystems. The organisations that win are the ones that build networks, not silos.”

    SAP’s tips for directors on leading transformation

    For directors guiding organisations through change, the message is simple — transformation is continuous and demands clear, adaptable leadership.

    Treat transformation as ongoing

    • Keep iterating, adapting and evolving.

    Balance heritage with progress

    • Honour the past, but keep moving forward.

    Lead early and decisively

    • Embed AI into every process, not just pilots.

    Use data as an asset

    • Make it trusted, connected  and governed.

    Build an empowered, agile workforce

    • Encourage people and technology to work together.

    Break down silos

    • Build networks and collaborate across ecosystems.

    Target quick wins

    • Reduce friction and embed AI where it adds immediate value.

    Keep it simple

    • Work with trusted partners under clear governance.

    Plan for change

    • Develop a focused AI strategy and make adaptability part of your DNA.

    Adaptability and collaboration

    As the discussion turned to what comes next, speakers were asked what advice they would offer directors and CEOs leading transformation today.

    Maier emphasised the importance of realism and collaboration.

    “Do a reality check of every AI initiative,” he advised. “Go beyond the proof of concept and focus on what is truly scalable.”

    He said transformation works best when organisations bring customers and partners into the process early. “You cannot transform in isolation. It takes an ecosystem.”

    Maier also urged leaders to simplify governance by working with selected, trusted partners under one clear model, and to develop a standardised AI strategy that aligns technology investment with measurable business outcomes.

    Nixon focused on adaptability as the defining trait of future-ready organisations. “Embedding the ability to change and adapt is most important. The next disruption is right around the corner, and change needs to be part of the organisation’s DNA.”

    The discussion resolved that lasting transformation requires discipline, trust and a culture that continuously evolves.

    Find out more.

    The biggest blockers to transformation

    Even the most ambitious transformation programs can falter when internal and structural barriers slow momentum. Across global organisations, several recurring challenges stand out as the biggest obstacles to meaningful change, according to SAP’s Peter Maier.

    Middle management barriers

    • Information gaps and cautious decision-making at the middle-management level often prevent progress. These teams can unintentionally slow momentum by withholding information or delaying action out of uncertainty or fear of risk.

    Excessive caution

    • Over-analysis and risk aversion can stall innovation. Striking the right balance between governance and agility is critical to maintaining momentum.

    Legacy systems and complexity

    • Outdated infrastructure and complex IT landscapes consume resources that could otherwise be invested in innovation and growth.

    Fragmented strategy and ownership

    • Siloed projects, inconsistent leadership and “shadow AI” initiatives lead to duplication and misalignment. Success requires a single, coordinated transformation strategy.

    Legacy culture

    • Cultural inertia, outdated processes and risk-averse mindsets remain major obstacles. Empowered teams, a clear vision and a culture of experimentation are essential to sustaining transformation.

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