Artificial intelligence is fast becoming a cornerstone of modern governance. It’s reshaping how boards operate, make decisions, and manage risk. Yet, amid the hype, the real question for in-house lawyers and governance professionals is not whether to use AI, but how to use it responsibly.
In Australia’s increasingly complex regulatory environment, where directors face growing scrutiny from ASIC, APRA and shareholders alike, the role of legal counsel is expanding. Beyond compliance, in-house lawyers now have a unique opportunity to shape the way their boards adopt AI to enhance efficiency, safeguard sensitive information, and strengthen oversight.
From Manual Workflows to Intelligent Governance
For many governance teams, the practical realities of board operations still rely on manual effort. Assembling agendas, summarising lengthy reports, drafting minutes, and chasing action items can consume valuable hours that would be better spent on strategic issues.
AI tools are changing that equation. When thoughtfully deployed, they can generate agendas based on prior meetings and policy calendars, draft minutes from transcripts, and distil board packs into executive summaries highlighting key risks and strategic themes. Instead of spending time buried in documentation, governance teams and legal counsel can focus on what truly matters: alignment, oversight, and risk management.
For in-house lawyers, this means moving from reactive compliance checks to proactive strategic contribution. AI can help surface relevant precedents, track decisions across multiple committees, and identify patterns in risk discussions. This empowers counsel to provide deeper insights and strengthen the board’s decision-making process.
Cutting Through Complexity with Legal Insight
One of the greatest challenges for boards (and their legal advisors) is navigating complexity. Directors are expected to digest large volumes of information quickly, balance competing stakeholder demands, and meet rising disclosure obligations.
AI-driven governance platforms can assist by turning dense, static materials into dynamic, searchable records. Rather than sifting through PDFs or emails, board members can use natural language search to find prior decisions, resolutions, or discussions related to a specific issue like ESG compliance or data privacy.
For general counsel, this capability transforms how advice is delivered. Instead of being gatekeepers of information, lawyers become strategic enablers who ensure that the right insights reach the board at the right time.
Security and Confidentiality: The Non-Negotiables
Australian boards are increasingly conscious of their cyber resilience, particularly after a series of high-profile data breaches. As AI enters the governance environment, the same level of vigilance must apply to digital tools used in the boardroom.
Publicly available AI platforms like ChatGPT or Gemini may offer convenience, but they often store user data externally. This creates potential risks under the Privacy Act and emerging AI regulatory frameworks. Inputs might be retained, logged, or even used to train public models. For legal teams, this represents a clear governance and confidentiality red flag.
That’s why purpose-built platforms like OnBoard AI are designed with governance-grade security at their core. A secure AI platform should operate entirely within a controlled environment that complies with standards such as SOC 2 Type II, ISO 27001, and GDPR. Data must be encrypted both in transit and at rest, stored within Australian or region-specific data centres, and protected through multi-factor authentication and granular access permissions.
Importantly, AI features should never share board data with external models or store it outside the organisation’s unique instance. This allows legal teams to harness AI’s efficiency without compromising confidentiality, which maintains the trust that underpins good governance.
A Regulatory Environment Demanding Speed and Accuracy
The Australian regulatory landscape is shifting rapidly. New reporting standards on cyber incidents, climate disclosure, and ESG performance are tightening expectations on directors. In-house lawyers are at the frontline of ensuring compliance with these evolving frameworks.
AI tools can help by ensuring that board materials, discussions, and resolutions are not just recorded but are also auditable and traceable. When every decision is indexed and searchable, it becomes far easier to demonstrate due diligence, oversight, and risk governance. This could be in response to a regulator’s query or a shareholder’s question.
For example, when new requirements emerge around cyber risk disclosure, AI can surface every prior board discussion related to cybersecurity, enabling legal teams to validate that oversight obligations have been met. What once took days of searching through archived minutes can now be done in seconds.
Policy, Not Experimentation: Setting Guardrails for Responsible AI Use
The benefits of AI are significant, but they hinge on disciplined implementation. The most forward-looking organisations are developing internal AI governance policies that outline:
- Which AI tools are approved for use within the board ecosystem
- When human oversight and legal review are required
- How AI outputs integrate with existing compliance and risk frameworks.
For in-house counsel, leading this policy development is a chance to shape not only compliance outcomes but also organisational culture. It positions the legal function as a driver of innovation, ensuring AI is used ethically, securely, and in alignment with the organisation’s strategic goals.
Leading the Change
AI is not here to replace governance professionals or legal counsel. It’s here to amplify their impact. By automating administrative friction, ensuring data integrity, and enhancing the board’s ability to make informed, timely decisions, AI enables counsel to move beyond compliance and focus on strategic leadership.
For Australian in-house lawyers, this is a moment to lead. The convergence of technology, governance, and law creates a powerful opportunity to make the board not only more efficient, but more accountable, transparent, and confident in every decision it makes.