Boards Fund AI and Cybersecurity Despite Limited Understanding of the Risks
Corporate boards are spending heavily on artificial intelligence and cybersecurity initiatives without fully grasping the technologies or their associated dangers, according to panelists at the second Princeton CorpGov Forum held May 21 in Princeton, New Jersey.
The forum brought together executives, investors, and alumni to discuss corporate governance across five decades. A panel on AI and cybersecurity in the boardroom featured Kevin McLaughlin, Vice President of Brand and Corporate Marketing at Dataiku; Patrick A. Westerhaus, Partner of Cyber Risk Services at EisnerAmper; and Michael W. Robinson, Chairman and CEO of The Montgomery Strategies Group.
AI Is Making Cybercrime Easier
Panelists said AI is lowering barriers for attackers. Ransomware, fraud, deepfakes, and social engineering campaigns are becoming more effective and easier to execute against companies of all sizes.
The discussion reflected a shift in how corporations view cybersecurity. Executives increasingly frame it as a financial risk management issue rather than a technical one, with board-level attention focused on potential losses and liability.
Companies Now Expect Measurable Returns from AI
Businesses have moved past treating AI as a speculative investment. They now expect concrete outcomes: efficiency gains, revenue growth, and competitive advantage.
Panelists drew comparisons to the dot-com era but stressed that AI's impact will prove longer-lasting. They also flagged energy consumption as a growing concern as adoption accelerates.
Attendees included Karen Snow, CEO of Rose and Co. Capital Advisors and former Global Head of Listings at Nasdaq; Ken Traub, Chairman, President and CEO of Comtech Telecommunications Corp.; David Schulhof, Founder and CEO of MUSQ Global Music Industry ETF; and Lawrence S. Elbaum, Co-Head of Shareholder Activism Practice at Sullivan and Cromwell LLP.
Topics at the forum extended beyond AI and cybersecurity to include university endowments, shareholder activism, private equity, venture capital, and the finance of college sports.
CorpGov has scheduled its next event, the 2nd LA CorpGov Forum, for September 18, with focus on sports, entertainment, and mergers and acquisitions.
For executives responsible for technology strategy and governance, understanding both AI's business value and its security implications is becoming essential. AI for Executives & Strategy resources can help leaders evaluate these trade-offs.
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