Boards sit at the heart of every organization’s success. But how effective are today’s directors, and where do the greatest opportunities for improvement lie?
Each year, OnBoard surveys hundreds of board professionals to understand how they’re adapting to new pressures, advancing collaboration, and embracing emerging technologies. In a recent ATLAS Leadership Series webinar, Josh Palmer, Head of Content and Research at OnBoard, unpacked the latest insights from the fifth annual Board Effectiveness Survey, which captured perspectives from more than 500 governance leaders across industries.
The discussion revealed where boards are progressing, where risk remains, and how AI is reshaping the next era of board effectiveness, including:
- How boards are advancing on effectiveness, collaboration, and security and what issues are holding them back
- Why uneven engagement, ineffective members, and outdated tools continue to drag boards down
- Where AI is already adding measurable value and what’s next for governance innovation
Read on to explore our top takeaways from this data-driven, forward-looking session.
Board Effectiveness Holds Steady in 2025
Despite shifting pressures, board professionals report steady effectiveness for the third year in a row. Today, 71% say their boards are more or somewhat more effective than the year prior.
“Boards feel as effective today as they did three years ago,” Josh said. “In a sense, that’s great. But in another sense, that’s the status quo holding steady.”
Collaboration continues to strengthen, signaling growing cohesion and stronger relationships among board members. Today, 71% of directors indicate they feel more collaborative, compared to 55% sharing the same sentiment in 2023.
Security confidence is also improving. After a sharp drop from 71% confidence in 2023 to 54% in 2024, confidence rebounded to 61% in 2025.
These trends suggest boards are finding their footing amid disruption. They’re holding the line of effectiveness while making steady progress on collaboration and security readiness.
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Financial Oversight and Strategy Remain Core Strengths
Boards continue to perform strongest in the areas most central to their mission. Today, 85% of board professionals rate their board as effective in financial oversight, followed closely by 78% in both strategic focus and governance and continuity.
“Your fiduciary duty as a board member is number one,” Josh said.
Onboarding new members also scored relatively high, with 65% of respondents reporting confidence in their processes for integrating new directors.
However, there’s still room to improve areas that support long-term resilience. Sixty-seven percent of board professionals identified cybersecurity of board information as an area of effectiveness, and 66% rated their use of technology for board meetings as effective. While boards continue to excel at oversight and strategy, digital readiness remains an ongoing challenge.
Ineffective Directors Remain a Risk
Boards continue to grapple with the challenge of uneven engagement and underperforming members. Nearly nine in 10 respondents said that at least 10% of their board is ineffective, and on average, 36% of board members are ineffective.
“A board of directors is a human system of governance,” Josh said. “It can only be as good as the humans in the room.”
Composition remains a critical factor in board performance. Not every member brings the same level of preparation, commitment, or alignment with the board’s mission. As Josh noted, “Not everyone may be qualified for their role. Not everyone is effectively contributing to the board’s mission and goals.”
Regularly evaluating performance and clarifying expectations are essential to maintaining accountability and ensuring that every director adds value.
Engagement and Preparedness Drive Success
According to respondents, the top driver of board success in 2025 is a more engaged board (52%). That comes as no surprise.
“If you have someone that’s shut down and not participating, that’s decreasing your board’s effectiveness,” Josh said. Engagement, he noted, is the foundation of collaboration and the key to ensuring that board discussions translate into meaningful action.
Other significant drivers of board success include:
- Shift to remote/hybrid: 44%
- Better meeting preparedness: 43%
- Improved strategic planning: 42%
- Addition of new board members: 40%
- Improved board leadership: 34%
Communication Gaps Undermine Effectiveness
While there are many factors that contribute to board ineffectiveness, a few rise to the top:
- Underperforming board members: 35%
- Low engagement from board members: 30%
- Limited communication between meetings: 24%
- Inconsistent board member preparedness: 24%
- Unclear board expectations: 24%
“There’s so much activity that happens in those business cycles between meetings,” Josh said. “It’s crucial that communication happens in those in-between moments.”
Regular check-ins, shared digital workspaces, and clear follow-up processes help maintain alignment and keep discussions focused on strategic priorities. By improving communication cadence and clarity, boards can close performance gaps and create a stronger sense of accountability throughout the governance cycle.
AI Gains Momentum in the Boardroom
Artificial intelligence is quickly becoming part of everyday governance. Nearly 70% of board professionals have used AI to support board work in the past six months. The most common tools include:
- ChatGPT: 48%
- Copilot: 32%
- OnBoard: 28%
- Gemini:11%
- Claude: 7%
Furthermore, 40% of respondents have used more than one AI tool.
“It’s no longer hypothetical,” Josh said. “It’s happening today.”
This year’s findings show that directors are not only experimenting with AI but also beginning to rely on it to manage large volumes of information, summarize materials, and improve meeting readiness. The steady increase in adoption signals a growing comfort with AI’s role in supporting – not replacing – board decision-making.
AI Adoption Correlates With Higher Confidence and Collaboration
Boards that embrace AI are seeing measurable benefits. According to the survey, directors who use AI are more likely to describe their boards as effective, collaborative, and confident in their security practices.
“Not only are the majority of directors using AI to prepare for their board meetings, they’re using multiple tools,” Josh said. “That says there’s a lot of experimentation going on and that boards are already finding real value.”
Boards Lag in Purpose-Built Technology
While many boards are embracing AI, most still rely on outdated tools for their core governance work. The survey found that 57% of boards distribute materials via email and PDF, while another 13% still use paper packets. Only 31% use digital tools. But 75% of those are general office platforms like Microsoft or Google, not purpose-built governance solutions.
Boards are built on legacy, continuity, and tradition,” Josh said. “So if that’s the way you’ve done it, that’s the way the next person will do it because that’s how they’ve been trained.”
This reliance on non-secure, manual tools leaves organizations vulnerable. “Get those confidential documents locked down somewhere,” Josh emphasized. “Especially when you’re considering how people are using AI these days.”
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Moving From Risk to Readiness
The 2025 Board Effectiveness Survey shows that while boards are holding steady in effectiveness, real progress will depend on how they adapt to new technologies and strengthen engagement. The message is clear: Readiness requires action, and the most effective boards are already moving.
Read the full 2025 Board Effectiveness Survey to benchmark your performance and identify where your board can move from risk to readiness in the coming year.
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About The Author
- Adam Wire is a Content Marketing Manager at OnBoard who joined the company in 2021. A Ball State University graduate, Adam worked in various content marketing roles at Angi, USA Football, and Adult & Child Health following a 12-year career in newspapers. His favorite part of the job is problem-solving and helping teammates achieve their goals. He lives in Indianapolis with his wife and two dogs. He’s an avid sports fan and foodie who also enjoys lawn and yard work and running.
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