I recently took part in a panel with experienced board members and executives, organized by the VAB (Virtual Advisory Board), to discuss the role of artificial intelligence in governance. It was a real moment of collective learning, with different perspectives, questions, and possible paths. It is natural that the conversation often begins with the most immediate themes, such as risk, compliance, and efficiency.

This debate is important and shows that we are still only beginning to understand what AI can really mean for strategy.

When we treat AI only as automation or as a new layer of controls, we risk reducing its potential to save time and reduce costs. But AI is not only about doing things faster. It is about how we think, how we make decisions, and how we create competitive advantage.

Today, when AI comes up in board discussions, the focus is usually on productivity, automation, and cost reduction. This is a legitimate perspective, but it is incomplete. The real power of AI lies in making products and decisions smarter, not just more efficient. Boards that restrict the conversation to efficiency may be missing the largest strategic shift since the internet.

And we have been here before. At the beginning of corporate adoption of the internet, those who saw it only as a tool for automation missed the strategic leap that followed.

Nubank is a clear example of this difference in mindset. It is a bank born digital, placing technology, product, and customer experience at the center of its strategy.

In September 2025, its market value reached USD 78.1 billion, making it the second-most-valuable company in Brazil, behind Petrobras, and the third-most-valuable in Latin America, behind Mercado Libre and Petrobras.

The business model is the same as traditional banks: holding money and lending money. But Nubank used technology to do it much better. No physical branches, a simple and intuitive customer experience, and a more efficient operation. Technology and the internet were part of the business design from the very beginning.

From efficiency to intelligence

It is a mistake to think this kind of narrow view only happens in large companies.

Recently, at one of the startups where I serve on the board, the founder presented an exciting proposal: to apply AI to day-to-day tasks across every area of the company to increase productivity.

The idea made sense, but it was limited. She had overlooked that AI could and should also be applied to the product. This is a common misconception: treating AI only as a tool for operational efficiency rather than as a strategic lever for differentiation.

And that was exactly our conversation. The greatest impact of AI is not only in making tasks more productive, but in making the product itself smarter and creating new competitive advantages.

At Lopes, for example, we used similarity algorithms with machine learning to generate more leads and improve recommendations. In 2020, long before the rise of ChatGPT and generative AI, we were already talking about AI Transformation, something that strongly resonated with our investors. AI is not just ChatGPT. It is in recommendations, predictions, personalization, and data-driven decisions.

The question the board should be asking is simple: how can AI make our products smarter and better serve our customers?

AI inside the product is not about efficiency. It is about differentiation. It is a growth strategy.

Governance and innovation: two sides of the same coin

Another common mistake is to view AI solely through the lens of risk and compliance. Yes, the risks are real, especially when it comes to the improper use of data or open AI tools.

Consider the board member who receives the pre-reading and uploads it to a generative AI tool for summarization. This creates a real compliance risk, as confidential company data may be used to train external models.

But governance and innovation are not opposites.

The role of the board is to ensure safety without suffocating learning. This means establishing clear guidelines for the use of data and tools. It means avoiding free versions of AI tools for corporate information, and prioritizing enterprise solutions like ChatGPT Enterprise or Gemini in Workspace. In some cases, it may even make sense to develop internal models, as we did at Lopes.

The key question for the board is: are we protecting ourselves from risks, or from opportunities?

Trying to block AI use is pointless. People will use it anyway. The board’s job is to create clarity and boundaries so that AI can be used responsibly while allowing innovation to move forward with confidence.

The new role of boards

AI requires a new kind of board member. It is not about becoming a technical specialist. It is about developing AI literacy: understanding enough to ask better questions, evaluate ethical implications, and recognize how the technology changes the decision-making process.

Concepts like deterministic vs probabilistic solutions, analytical vs generative AI, conversational vs graphical interfaces, or AI-first vs AI-native strategies help highlight the essential point: AI changes the logic of decisions.

Soon, AI committees and board members with technological backgrounds will become common. And just as Nubank was born digital and surpassed century-old banks, companies born AI-native will surpass many of today’s incumbents.

The role of the board is to ensure the company does not just use AI, but learns to think with AI.

Smart boards for smart companies

AI is not just a tool. It is a new way of thinking. Boards that understand this first will lead the next wave of business transformation.

The challenge now is to learn enough to ask better questions and guide the company beyond efficiency, toward creating new capabilities and new ways to compete.

Here are some questions that can open meaningful conversations in board meetings:

• Are we using AI only to reduce costs, or also to create new capabilities in our product and decision-making
• Where can AI help us make better and faster decisions, not just automate tasks?
• Do our leaders and teams understand enough about AI to form hypotheses, test them, and learn safely?
• How can we create an environment where curiosity and experimentation are encouraged, so everyone can learn and evolve?
• How are we ensuring the responsible and ethical use of data and AI tools, without blocking innovation?
• How can AI help us create new advantages that are difficult to copy?
• If we were starting the company today, what would an AI-native version of it look like?

Because in the end, governing with intelligence is the new competitive advantage.

Workshops, coaching, and advisory services

I’ve been helping companies and their leaders (CPOs, heads of product, CTOs, CEOs, tech founders, and heads of digital transformation) bridge the gap between business and technology through workshops, coaching, and advisory services on product management and digital transformation.

Gyaco Podcasts

At Gyaco, we believe in the power of conversations to spark reflection and learning. That’s why we have three podcasts that explore the world of product management from different angles:

• Produto em Pauta: In the new season, titled “Beyond the Buzzwords”, Felipe Castro and I demystify product terms with real examples from our clients. Available on YouTube and Spotify. Recorded in Portuguese, with English subtitles on YouTube.
• Product Chronicles, the Brazilian Way: with Fábio Martinelli Duarte and Paulo Caroli — the Brazilian way of building products: stories, challenges, and lessons learned, featuring case studies from our clients. Available on YouTube and Spotify. Recorded in English, with Portuguese subtitles on YouTube.
• Beyond the Article, Expanded by AI: C.L.A.R.A. (Creative Language AI for Reflective Augmentation) chats with my AI clone, JocAI, expanding on my articles with new perspectives. Available on YouTube and Spotify. Thanks to AI, episodes are available in English, Spanish, and Portuguese.

Digital Product Management Books

Do you work with digital products? Do you want to know more about managing a digital product to increase its chances of success, solve its user’s problems, and achieve the company objectives? Check out my Digital Product Management books, where I share what I learned during my 30+ years of experience in creating and managing digital products:

• Digital transformation and product culture: How to put technology at the center of your company’s strategy
• Leading Product Development: The art and science of managing product teams
• Product Management: How to increase the chances of success of your digital product
• Startup Guide: How startups and established companies can create profitable digital products