AI GUIDE FOR BOARDS IN SINGAPORE
Section I: The Board Mandate
3.2 Assessing Board Capabilities
One of the most common governance challenges is the knowledge gap that can emerge between rapidly evolving management teams and boards. Directors do not need deep technical expertise or coding capability. However, boards do require su cient AI uency to: • Engage and challenge management eectively. • Understand strategic implications. • Assess major risks. • Exercise informed judgement. Boards should periodically assess their collective capability across several core areas: • AI and data fundamentals. • Generative AI and machine learning concepts. • Cyber and operational resilience implications. • Ethics and responsible AI.
• Regulatory and legal developments. • Strategic business impact.
Boards should ensure that AI oversight does not become concentrated in a small number of individuals, creating dependency or “key person” governance risk. Rather than expecting all directors to possess the same level of AI expertise, boards should seek an appropriate distribution of capabilities across the board, as outlined in the Board AI Competency Framework . Boards should ensure they have an appropriate mix of AI capabilities, with varying levels of expertise across directors, to provide eective oversight of AI-related opportunities and risks.
Board AI Competency Framework
Capability level
Board composition
Governance expectation
Baseline uency
All directors
Foundational understanding of AI terminology, business implications, and governance considerations Ability to challenge management on AI strategy, deployment models, data governance, and risk trade-os Specialist capability to support deeper oversight of technical, regulatory, or operational issues
Working knowledge
Some directors
Deep expertise
At least one director (or adviser)
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