The next era of governance: Reflections from 20 years of innovation
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Governance Technology Evolution: Milestones & Shifts
When I first started in the governance technology space twenty years ago, the world was a very different place. Most companies were still governed by the rhythms of paper, pen and marathon meetings. At the time, Sarbanes-Oxley loomed large, reshaping how public companies understood and enforced accountability. Technology in governance was viewed mostly as a way to make board processes more efficient but not fundamentally different.
Back then, the pitch to boards was simple: let technology help you do what you’re already doing, but with less friction and better consistency. The truth was, many directors didn’t believe board service was all that complicated. The role was narrowly defined: hire the CEO, ensure the company’s general wellbeing, and report to shareholders. Risk oversight was barely on the radar, and the idea of technology revolutionizing governance felt, at times, like a solution in search of a problem.
Then came the iPad - both a popular executive holiday gift, and an unexpected inflection point in the governance technology space. Suddenly, directors realized the device could replace the unwieldy board books that weighed down their bags and their schedules. Within months, every governance technology provider rushed to market with an iPad app. Usage soared, but the core proposition for governance software hadn’t yet changed: it was still focused on making board meetings more efficient.
New challenges shift the governance paradigm
Around 2015, another shift occurred when board members found themselves besieged by new and complex challenges: cybersecurity breaches, ESG demands, shareholder activism, and the ever-expanding universe of stakeholder expectations. The job of the board was becoming more about risk oversight. Directors no longer had a passive role, but an active responsibility for scanning the horizon and anticipating what might come next. I started hearing directors say, “I want to see what’s coming around the corner.” That mindset shift was profound, and the focus moved from looking backward to looking forward.
This shift drove the next wave of innovation in governance technology. We knew that boards needed more than digital board books summarizing old data; they needed better dashboards, tools for smarter decision-making, and real-time insights. At Diligent, it was the spark that sent us down the road to becoming a true GRC (governance, risk, and compliance) platform. We started building a line of sight that stretched from the frontlines of the business straight to the boardroom. The goal was to enable directors to do their jobs, not just track what management had already done.
Then the pandemic hit. In an instant, board meetings couldn’t happen unless they went digital and virtual. Concerns about security lurked, especially with everyone working outside traditional firewalls, but Diligent’s commitment to cloud-based encryption and secure access paid off. Necessity propelled long-overdue adoption, and the world of governance technology leapt forward more in a few months than it had in years.
The arrival of generative AI: Boards as architects of the future
Generative AI & the Future of Board Governance
The post-pandemic landscape brought even more layers of complexity: increased market volatility, heightened geopolitical risks, workforce transformation, and the need to revisit what effective oversight really meant. And then, almost on cue, generative AI burst onto the scene. Directors are now seeing tools that could help them “see around the corner” by generating more nuanced scenarios, calculating risk probabilities and offering creative approaches to opportunity assessment.
We’re at the beginning of understanding what GenAI will mean for governance. In some ways, it feels eerily familiar - a land grab for new tools and capabilities with uncertainty about risk, bias, privacy, and the limits of automation. My hope is that GenAI does not become a more efficient way to do the same things, but a tool that will transform governance itself. Imagine board members focused more on future scenarios than past performance, empowered to ask better questions, spot emerging threats and trends, and help their companies prepare for the unknown.
Of course, as with any new technology there are some new concerns. GenAI should be a thought partner, not a decision-maker, and we must guard against the temptation to abdicate judgment and let GenAI do the thinking for us. Bias, data privacy, and intellectual property challenges are real risks we must address, not just acknowledge. Mistakes were made with earlier tech rollouts (social media and recommendation engines among them), and we have the opportunity with GenAI to get it right before the window closes.
Looking back, I’m struck by how much the field has changed - and how much further it still has to go. The first twenty years of governance technology were about digitizing and streamlining current processes. The next twenty years could be about reinventing the job itself: helping boards shift from stewards of the past to architects of the future. Whatever comes next, I remain optimistic - and more than a little curious.
As boards face this new era shaped by AI, risk, and rising stakeholder expectations, preparedness is everything.
Explore the AI Board Readiness Report from the Diligent Institute and Corporate Board Member to see how directors can navigate uncertainty, embrace innovation responsibly, and build the boardroom of the future.
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