94% companies will keep spending on AI even when it fails
A significant majority of S&P 500 boards recognize AI as a material risk, yet only a small fraction possess the necessary expertise to address it. Despite this knowledge gap, companies continue to allocate substantial funds towards AI initiatives. The trend raises concerns about the decision-making capabilities of these boards in the face of emerging technologies.
- ▪83% of S&P 500 boards identified AI as a material risk.
- ▪Only 2.7% of directors on these boards have any disclosed AI expertise.
- ▪Deloitte's survey found that 2 out of 3 board members reported limited to no knowledge or experience with AI.
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94% will keep spending on AI even when it fails James 21 May 2026 — 11 min read 83% of S&P 500 boards identified AI as a material risk. Only 2.7% put anyone qualified on the board to assess it. The alarm is on the screen. Nobody in the room is looking. Somewhere on the 40th floor of a building you would recognize, a room full of people who could not create an email account without calling someone from IT is making the largest capital allocation decisions in the history of American business.They are the board of directors, the people with fiduciary authority and a median age of 63+, the ones who vote on strategy and sign off on budgets whilst deciding the fate of hundreds if not thousands of workers.
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