Amid global economic and political uncertainty, Canadian board leaders are facing unprecedented challenges in staying focused on their priorities. The ever-changing landscape requires leaders to navigate a maze of competing demands, often resulting in divisions due to a lack of strategic alignment. Divergences in direction can be particularly evident in critical areas such as technology and sustainability, highlighting the need for cohesive leadership in times of rapid change.
The IN group Technology and the meeting room The research identified the top three priorities shaping board agendas in the United States, the United Kingdom, Germany and the Netherlands: artificial intelligence (AI), cybersecurity and sustainability. These three priorities mirror those of boards in Canada.
57% of US executives believe that generative AI poses the biggest threat to their business, a sentiment echoed by 49% of their UK counterparts. As AI continues to revolutionise industries, it presents both significant opportunities and challenges.
This concern is an extension of cybersecurity as a primary objective, highlighting the evolving technology risk landscape as threats become more sophisticated and pervasive.
As the threat of global cyberwar looms, Deloitte analysts say Canada “lacks a robust strategy for implementing technological advances in national security.”
In the meantime, sustainability has become a priority, driven by growing environmental awareness and regulatory pressures.
As leaders struggle to balance these priorities, the need for strategic alignment from board members, as well as strong governance, has never been more critical to address these pressing issues and their implications for business success.
The tidal wave of cyber threats
Cybersecurity remains a top priority for executives, driven by rising geopolitical threats and an increase in cyberattacks. In the face of these challenges, businesses today must adopt robust security measures and a forward-thinking approach to risk management.
Developing and recruiting cybersecurity specialists and training current employees are essential to anticipate potential vulnerabilities.
However, cybersecurity experts were identified by the Tech and the Boardroom report as the biggest talent gap.
The Canadian government’s slow pace of building cybersecurity infrastructure has reverberated through boardrooms across the country. As a result, executives are less aware of potential threats and the skills needed to identify, respond to and recover from attacks. Malicious actors are often located outside of Canada’s borders, but that doesn’t mean boards can overlook cybersecurity skills.
Investing in cybersecurity training for employees is essential for businesses today to serve as a first line of defense against cyber threats. Fostering a culture of security awareness through training promotes responsible behavior and supports business growth by enabling the safe adoption of new technologies.
According to the report, 37% of HR leaders view cybersecurity as a critical investment area, the highest percentage among C-suite executives. Yet only 17% of chief operating officers (COOs) view cybersecurity as their top priority.
However, COOs are also struggling to balance investments in cybersecurity and AI, with 15% saying AI should be the top priority. This dual focus underscores a broader trend toward leveraging advanced technologies to effectively address cybersecurity challenges.
Generative AI: A Double-Edged Sword
While the potential for AI to transform business operations is undeniable, the perceived threat cannot be ignored. The fear that AI could disrupt traditional business models is palpable among executives: 21% of US executives, both tech and non-tech, prioritize investing in secure AI infrastructure, more than the UK, Germany and the Netherlands.
Deloitte analysts note that Canada has been slow to adopt artificial intelligence, particularly for national security purposes. This is partly due to a lack of AI experts capable of overseeing development projects, regulatory frameworks and deployment in the public and private sectors.
Among U.S. respondents, 16% view AI as the biggest challenge facing their business. This sentiment is particularly strong among COOs (15%), CDOs (16%), and CFOs (16%), who also identify AI as a major issue. HR leaders are less concerned, with only 8% viewing AI as a major challenge to their operations.
There is still much work to be done to put in place the systems, processes and people needed to meet the AI challenge and it is up to technology leaders to ensure their organisations have the skills and knowledge to fully understand the importance of AI and its implications for business.
The focus on AI skills is not only about taking advantage of technological advances, but also about protecting the business from potential AI-related disruptions – a goal that is starting to become a priority for Canadian boards. But there is still a long way to go.
Companies must invest in continued training of their staff and in recruiting top talent to effectively navigate the complex AI landscape.
Efforts to meet sustainability requirements
Sustainability is at the heart of executive concerns and is gaining in importance in all markets. In the United States, 82% of companies attach great importance to sustainability, compared to 73% in Europe.
As environmental concerns become more pressing, companies are increasingly integrating sustainable behaviors into their core strategies to ensure they meet consumer expectations.
However, a recent study by PwC investigation found that few of Canada’s largest companies are ready to adopt mandatory ESG reporting standards.
In Canada, regulation is becoming increasingly complex and demanding, particularly for companies that operate in multiple jurisdictions. Disclosure of climate change risks, answering questions about the management of material ESG risks, and producing supporting data are common challenges.
To manage evolving reporting regulations, companies across Canada should consider engaging consultants to oversee the development of ESG reporting projects, working with pre-trained experts who understand the landscape and can meet growing demands.
The focus on sustainability among executives also reflects broader trends in corporate social responsibility. Integrating sustainability into technology strategies involves adopting energy-efficient technologies, reducing waste, and promoting sustainable practices in the supply chain. Achieving these goals requires hiring sustainability experts and providing continuous learning opportunities for staff to stay up-to-date with best practices.
Ultimately, the diverse and evolving priorities of leaders reveal a complex landscape in which cybersecurity, AI, and sustainability dominate the agenda. There is an urgent need to recruit and upskill to meet these challenges. As companies navigate this environment, integrating technology leadership and focusing on innovation and inclusion will be critical to their long-term success.
Derek Mackenzie is the CEO of Investigation.
