This chapter underscores the critical need for boards to assume proactive leadership in navigating the transformative—and challenging—landscape of artificial intelligence (AI). In an era defined by constant disruption, boards must move beyond traditional oversight models and integrate AI as a strategic priority. AI’s rapid evolution, particularly in generative and agentic forms, offers immense opportunities for innovation, efficiency, and value creation while simultaneously introducing risks such as data privacy breaches, algorithmic biases, and regulatory uncertainty. Although a majority of directors acknowledge the broad impact of sustainability, trade, and geopolitics on their organizations, fewer board members express confidence in managing AI’s complexities. This chapter argues that strengthening board governance is not merely best practice—it is essential for sustaining long-term corporate performance and resilience. Drawing on insights from previous research and extensive board engagement initiatives, the chapter emphasizes that boards must enhance their competencies in digital and AI-related matters. Ultimately, it calls for an evolution in governance frameworks, where boards are equipped to balance operational innovation with robust risk management and ethical oversight, ensuring that AI technologies are deployed responsibly to drive competitive advantage and sustainable growth.