In the age of AI, why do Australian company boards have so few technology experts?

AI Influence on Global Economy: Artificial intelligence is deeply influencing almost every industry, changing business models and investment strategies worldwide.
Board Member Expertise Gap: Despite the transformation, most large Australian firms lack sufficient boards members with STEM (Science, Technology, Engineering, Maths) expertise.
Lack of Technological Expertise: Over the past 15 years, only a minor increase in directors with STEM backgrounds has been observed among Australia’s largest 500 listed companies, rising from 8% to 13% – highlighting a persistent underrepresentation.
Importance of STEM Expertise: Companies with more STEM expertise on their boards generally invest more in innovation and are valued more highly by investors, according to the research.
Broader Innovation Issues: Australia’s broader innovation system is falling behind, as demonstrated by a recent federal government report that concluded critical reform was needed.
Cybersecurity Risks: Firms without adequate STEM knowledge are more vulnerable to cybersecurity breaches, a growing threat that demands robust board-level oversight.
Call for Action: To keep up with technological advancements and reduce cyber risks, Australian companies should increase STEM expertise among their boards to benefit innovation and cybersecurity comprehensively.