Boards push AI but can’t separate hype from reality, CEOs say

Posted by News Room 7 May 2026
Boards push AI but can’t separate hype from reality, CEOs say

Dive Brief:

  • Three-quarters of corporate board members said they believe their knowledge of artificial intelligence technology is equal to or ahead of their peers, but almost 40% of CEOs said boards lacked “an informed view of how AI is reshaping growth strategy,” according to a Monday report from Boston Consulting Group.
  • A survey, which polled 351 CEOs and 274 board members from companies with at least $100 million in annual revenue, found that boards are pushing for rapid AI implementation. However, more than half of CEOs said boards need a better grasp of the difference between AI hype and reality.
  • While 80% of both groups said that prospective board members should be required to prove they understand how AI is reshaping their industry, one-third of CEOs said board members overestimate the human capabilities AI is able to replace.

Dive Insight:

The disparity between board assumptions about AI and CEO realities is playing out against a background of potential worker pay cuts and staff reductions. A recent survey from ResumeBuilder.com found that 54% of companies said they will have cut employee compensation and 26% will have laid off workers by the end of 2026 to fund AI investments. 

BCG said the survey revealed a disconnect between AI strategy and execution, suggesting that board members’ lack of comprehension, coupled with their fear of missing out, could be contributing to AI adoption issues. 

For example, 61% of CEOs said their boards were rushing AI transformation, and they estimated that 35% of their performance evaluation depended on achieving AI ROI. By comparison, boards estimated 27% of performance evaluation relied on such, meaning that there’s also a gap between perceived expectations and formal accountability.

CEOs can also narrow the divide “by talking about AI in a much more differentiated way to clearly illustrate where AI can be a substitute for humans and where it can complement human work,” Julie Bedard, a BCG managing director and partner, said in a statement.

In a separate study, 31% of leaders said their organizations considered AI solutions before considering hiring for roles, according to a 2025 report from the British Standards Institution.

But notably, a recent report from PwC found that 81% of C-suite executives said their companies were at least a year away from seeing any meaningful returns from their AI investments beyond efficiency gains.