Boards of directors are confronting an ever-expanding list of critical, complex topics. For the past few years, that list has been driven by an increased urgency to address climate and sustainability issues, and that imperative continues. But other issues—such as the rising importance of generative AI (GenAI) and intensifying trade and geopolitical disruptions—have also become a central part of the board agenda.

BCG, INSEAD Corporate Governance Centre, and Heidrick & Struggles have teamed up to understand how boards are responding to these complex trends and disruptions. Our work this year includes a survey of 444 directors and executives around the world, along with a dozen roundtables that brought together more than 130 directors in North America, Europe, Southeast Asia, Africa, and South America.

Our research revealed that while boards have made meaningful advances to address sustainability topics, they are less confident when it comes to their understanding of and ability to capitalize on GenAI. We also found that the lessons boards learned by addressing sustainability issues are helping them evolve toward a new model of governance that stresses forward-looking strategies and adaptability.