Priorities Have Been Determined for Boards of Directors

Ernst & Young (EY) published the “EMEIA Board Priorities 2024” research.

Details of the research were included in the statement made by the company. Accordingly, the boards of directors of companies operating in Europe, the Middle East, India and Africa will have a critical role in matters such as keeping up with regulatory developments and overcoming geopolitical and economic challenges.

One of the striking and important results of the research was the interest in generative artificial intelligence (Gen AI) technologies that are likely to transform business models by significantly increasing the productivity of teams and stimulating innovation.

Boards need to understand the opportunities associated with AI technologies but also be aware of the risks these technologies bring. These risks include bias, copyright infringement, and privacy threats.

The rise of Gen AI is also driving a rise in cyberattacks, with malicious actors using Gen AI tools to create personalized phishing emails and fake videos or gain unauthorized access to personal devices.

In order for boards of directors to provide effective support to companies adopting AI-driven transformation, it is important that the business has a solid ethical framework for the development and use of artificial intelligence systems, as well as strong governance processes for the collection, management and storage of data.

Investing in a decarbonization strategy

According to the research, another important topic for boards of directors was “talent management”. Companies need to be proactive in ensuring diversity in their workforce and retaining and developing talent. More than 75 percent of companies in the European Union (EU) struggle to find professionals with the necessary skills to fill relevant positions.

Geopolitical and economic uncertainties are expected to put pressure on businesses in 2024. Due to recent developments in the world, 45 percent of companies globally state that they see geopolitical risks as a serious threat, while 43 percent are concerned about the possibility of legislative changes and 40 percent see economic conditions as a significant risk.

Unless companies invest in a decarbonization strategy, they may be missing an opportunity to create value for their brands. A successful net zero transformation requires a holistic effort across the business.

EY Turkey Consultancy Services Department Head and Company Partner Gökhan Gümüşlü, whose views were included in the statement, stated that companies operating in the region face regulatory, geopolitical and economic difficulties, and that these difficulties are expected to continue.

Stating that boards of directors need to balance short-term concerns under many important headings such as artificial intelligence technologies, talent management, sustainability, supply chain and economic framework with long-term strategies in order to effectively lead their companies, Gümüşlü said, “However, boards of directors should have access to the right information and correct “They can be successful if they have the ability to ask questions and effectively leverage both their own expertise and that of external consultants.” He made a statement.