NACD Publishes 'Tuning Corporate Governance for AI Adoption' Guidance Citing 32% Rise in AI Incidents

The National Association of Corporate Directors published Tuning Corporate Governance for AI Adoption in January 2025 as part of its 2025 Governance Outlook series, targeting US corporate boards and the directors who serve on them. The guidance identifies hallucinations, data privacy vulnerabilities, and bias as the primary AI-specific risk categories requiring dedicated board-level attention, and it grounds these concerns in quantitative incident data from the AI Incident Database, which recorded a 26 percent year-over-year increase in AI incidents between 2022 and 2023. Preliminary 2024 figures cited in the document indicate that trend is accelerating, with incidents expected to have grown by more than 32 percent. The guidance stops short of prescribing specific oversight structures but frames the core problem as a mismatch between legacy corporate governance mechanisms and the pace and character of AI-related risk, calling for boards to actively adapt rather than apply existing frameworks by analogy.