The boardroom has changed. Permanently. The issues filling board agendas today are not temporary disruptions. They are the operating environment. AI, cyber risk, geopolitical instability, regulation, climate exposure and cost volatility are reshaping how organisations compete, invest and make decisions. For boards, the expectations have changed. Directors are being asked to understand more, engage more deeply and bring increasingly relevant experience to the table. Regulators, investors and other stakeholders are also looking more closely at whether boards are equipped for what lies ahead. The question is no longer simply whether a board is well governed. It is whether the board has the right mix of capability, judgement and adaptability to lead the organisation into its next chapter. The capability conversation is changing Credentials and experience remain important, but they are no longer enough on their own. Curiosity, adaptability and a willingness to keep learning are becoming equally valuable. AI is a clear example. Directors do not need to become technologists, but they do need enough understanding to ask informed questions about risk, ethics, data, accountability and return on investment. Cyber security and data governance present a similar challenge. These issues now sit firmly within board accountability. Scenario planning, crisis preparedness and understanding where the organisation’s exposures lie are no longer occasional agenda items. They are part of the board’s regular rhythm. Renewal cannot wait for a vacancy Strong board renewal starts with future strategy. What capabilities will be required over the next five to ten years? Which risks will become more material? Where does the board need deeper commercial, functional or sector experience? Which perspectives may be missing? These questions are more useful than simply asking whose term is ending next. The most effective boards are moving beyond static skills matrices and periodic succession discussions. They are treating board composition as a dynamic capability plan that evolves alongside the organisation. They are refreshing skills matrices against future strategy, building learning agendas across AI, cyber, ESG, risk and geopolitics, reviewing committee structures and linking succession to capability rather than tenure alone. They are also paying closer attention to board dynamics. A technically capable board can still underperform when trust is low, challenge is poorly handled or directors struggle to work together under pressure. Constructive challenge, sound judgement and the ability to listen, learn and adapt are central to effective governance. The briefs are changing Across Derwent’s Board Practice, we are seeing more mandates where recent sector and functional experience is a primary driver of selection. Boards are seeking contemporary expertise in areas including technology and AI governance, audit and risk, renewables and infrastructure, capital allocation and mergers and acquisitions. The profile of who is considered “board-ready” is therefore broadening. Traditional governance experience remains valuable, but boards increasingly need directors who bring current knowledge, diverse perspectives and the ability to contribute to new and fast-moving conversations. Board search and succession planning are not simply about filling a vacant seat. They are about building a board that is ready for the future of the organisation. The strongest boards will be those that renew with intent – bringing together the experience, behaviours and perspectives required not only for today’s agenda, but for the decade ahead. ___________________________________________________________________________ If you're reviewing your board's composition, capability, or succession planning, reach out to Michelle Gardiner , Managing Partner – Board Practice, or contact us here . We'd welcome the conversation. Derwent brings together executive search, interim solutions, and board search, partnering with your organisation to find and connect the right high-impact talent to support your leadership needs, now and into the future.

Every leader in the room on Tuesday 5 May had something in common: they are being asked to guide their organisations through a transformation they are still learning to understand themselves. That shared reality – not a technology problem, but a leadership one – set the tone for our AI & The People breakfast in Melbourne, where senior executives gathered to examine what AI transformation actually requires of organisations, their people functions, and their leaders. The internet took decades to reshape business. AI is compressing similar changes into years, sometimes months, and waiting for certainty is not an option. We were privileged to have Peter Tonagh and Jenny Bryant join us as guest speakers – both navigating this transformation firsthand, not observing it from a distance. Five themes shaped the conversation. This is a leadership moment – not a technology decision AI is not primarily a question of which tools to buy. It is a question of how value gets created in an organisation, and who takes responsibility for leading that shift. The organisations pulling ahead are not the ones that have AI figured out – they are the ones learning to experiment intelligently while others hesitate. The most effective leaders are approaching this as conductors of human-AI teams: setting direction, making judgement calls, and ensuring AI amplifies their team's capabilities rather than displacing their critical thinking. That requires adaptive leadership, evolving cultural awareness, and a genuine commitment to bringing people with them through the change. This also reframes where accountability sits within organisations. AI transformation is not an IT project. It is a workforce capability shift – which means HR, learning and development, and operational leaders need to be at the centre of it. Adoption is the constraint – not capability When senior leaders use AI visibly in their own work – for writing, analysis, and decision-making – adoption accelerates across the organisation. Where leaders delegate it to an innovation team, uptake stalls. The tone is set from the top. AI capability is advancing well ahead of organisational uptake. Most businesses already have access to powerful tools but are significantly underutilising them. The gap is not about access or functionality – it is about behaviour, confidence, and whether AI has been genuinely embedded into daily workflows. Many organisations are still treating AI as a procurement decision when it is, in reality, a usage problem. When AI tools are positioned as specialist or optional, adoption stays low and uneven. When they are treated as standard infrastructure – available to everyone, expected to be used, as commonplace as email – adoption normalises quickly. The organisation that emerges looks different As individuals become more capable with AI support, the rationale for traditional management layers is shifting. Where a manager's primary function has been information aggregation and reporting – and AI can do much of that work – the case for that layer weakens. This does not mean fewer leaders. It means leaders operating with broader remits, and decision-making moving closer to the front line. The nature of the work itself is changing too. As AI absorbs routine, process-driven tasks, roles are becoming more focused on judgement, problem definition, creativity, and communication. That shift is not straightforward – the cognitive load on people can increase, and organisations need to be realistic about supporting teams through it. As AI tools become widely available, competitive advantage is shifting to how deeply they are integrated with internal data, knowledge systems, and the specific context of the business. The proprietary knowledge organisations hold becomes more valuable, not less, when AI is properly grounded in it. That grounding requires deliberate effort and consideration – providing AI with the context of the organisation's actual situation, its people, its way of working. The organisations doing this well are building human intelligence into their models, not just deploying generic tools and expecting meaningful results. Beyond organisational structure, AI is also changing how people functions operate in practice. Leaders are using AI to support coaching conversations, sharpen performance management, and improve the quality of feedback to their teams. Used well, AI does not replace those human interactions – it helps leaders show up better in them. Build broadly before you narrow Rather than concentrating effort on a small number of high-impact use cases, the organisations making the most progress are enabling broad, distributed adoption. Hundreds of small improvements across individuals and teams compound into significant productivity gains – individually modest, collectively meaningful. The practical approach: create the conditions for open experimentation without over-structuring it early. Allow teams to test different tools, discover what’s possible for the whole business through different perspectives, styles and responsibilities, share what they are learning, and let value emerge before formalising investment decisions. More mature organisations are beginning to focus on a small number of enterprise-wide priorities – customer experience, supply chain, and contact centres among them – but they arrived there through exploration, not by picking their bets upfront. Explore widely, then narrow with evidence. Talent strategies are evolving – and so is the baseline Hiring is shifting toward the attributes that enable individuals to keep pace with change: curiosity, critical thinking, learning agility, and resilience. Technical skills are increasingly table stakes. The differentiator is how quickly someone can learn, unlearn, and relearn as tools and roles continue to evolve. Building that capability internally is more scalable than chasing scarce external talent. The organisations making progress are treating AI literacy the way organisations treated digital literacy a decade ago – as a baseline expectation built through training, coaching, and everyday use, rather than a specialism held by a small number of experts. The conversation was a reminder that the leaders thriving through this period are not waiting for certainty. They are turning uncertainty into opportunity – experimenting intelligently, bringing their people on the journey with them, and building AI fluency from the inside out across the whole workforce. Our thanks to Lindsay Every , Group Managing Partner at Derwent, for hosting the morning, and to Peter and Jenny for sharing their experience and expertise with such honesty and depth. Continue the conversation For further insights or to explore how Derwent can support your organisation's approach to AI and workforce transformation, connect with our team at melbourne@derwentsearch.com.au To register your interest in future Derwent events, please reach out to us at events@derwentsearch.com.au .

The boardroom has changed. Permanently. The issues filling board agendas today are not temporary disruptions. They are the operating environment. AI, cyber risk, geopolitical instability, regulation, climate exposure and cost volatility are reshaping how organisations compete, invest and make decisions. For boards, the expectations have changed. Directors are being asked to understand more, engage more deeply and bring increasingly relevant experience to the table. Regulators, investors and other stakeholders are also looking more closely at whether boards are equipped for what lies ahead. The question is no longer simply whether a board is well governed. It is whether the board has the right mix of capability, judgement and adaptability to lead the organisation into its next chapter. The capability conversation is changing Credentials and experience remain important, but they are no longer enough on their own. Curiosity, adaptability and a willingness to keep learning are becoming equally valuable. AI is a clear example. Directors do not need to become technologists, but they do need enough understanding to ask informed questions about risk, ethics, data, accountability and return on investment. Cyber security and data governance present a similar challenge. These issues now sit firmly within board accountability. Scenario planning, crisis preparedness and understanding where the organisation’s exposures lie are no longer occasional agenda items. They are part of the board’s regular rhythm. Renewal cannot wait for a vacancy Strong board renewal starts with future strategy. What capabilities will be required over the next five to ten years? Which risks will become more material? Where does the board need deeper commercial, functional or sector experience? Which perspectives may be missing? These questions are more useful than simply asking whose term is ending next. The most effective boards are moving beyond static skills matrices and periodic succession discussions. They are treating board composition as a dynamic capability plan that evolves alongside the organisation. They are refreshing skills matrices against future strategy, building learning agendas across AI, cyber, ESG, risk and geopolitics, reviewing committee structures and linking succession to capability rather than tenure alone. They are also paying closer attention to board dynamics. A technically capable board can still underperform when trust is low, challenge is poorly handled or directors struggle to work together under pressure. Constructive challenge, sound judgement and the ability to listen, learn and adapt are central to effective governance. The briefs are changing Across Derwent’s Board Practice, we are seeing more mandates where recent sector and functional experience is a primary driver of selection. Boards are seeking contemporary expertise in areas including technology and AI governance, audit and risk, renewables and infrastructure, capital allocation and mergers and acquisitions. The profile of who is considered “board-ready” is therefore broadening. Traditional governance experience remains valuable, but boards increasingly need directors who bring current knowledge, diverse perspectives and the ability to contribute to new and fast-moving conversations. Board search and succession planning are not simply about filling a vacant seat. They are about building a board that is ready for the future of the organisation. The strongest boards will be those that renew with intent – bringing together the experience, behaviours and perspectives required not only for today’s agenda, but for the decade ahead. ___________________________________________________________________________ If you're reviewing your board's composition, capability, or succession planning, reach out to Michelle Gardiner , Managing Partner – Board Practice, or contact us here . We'd welcome the conversation. Derwent brings together executive search, interim solutions, and board search, partnering with your organisation to find and connect the right high-impact talent to support your leadership needs, now and into the future.