The global economy is undergoing major transformation as artificial intelligence (AI) filters into almost every industry – reshaping business models and investment decisions.

For those who sit on a company’s board, setting overall strategy and holding management to account, the shift is raising the bar on what’s required. Board members need to understand the new technology they’re investing in. They must also be equipped to oversee complex technological risks.

Given this, you’d expect to see large companies stacking their boards with directors who have science, technology, engineering and maths (STEM) expertise. But that isn’t the case.

Our new research shows that at the largest 500 listed companies in Australia, many boards lack members with sufficient technological expertise. More than half had no directors with STEM expertise on their board.

Here’s why that’s a problem – and why all of us have a stake in fixing it.

We examined the backgrounds and expertise of directors from the largest 500 firms listed on the Australian Securities Exchange (ASX) and compared board composition in 2007 to 2022.

We were interested in whether the number of directors with STEM expertise had increased to match the significant technological advancements that had taken........

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