This panel will examine how AI adoption is transforming operations, risk profiles and value creation in closely held companies and what boards must do in response. The panelists will map practical use cases — eg, sales enablement, customer support, coding copilots, document automation and forecasting. They will also map the attendant risks, including data leakage and trade‑secret loss, intellectual property ownership, model bias and hallucinations and supply‑chain/vendor AI exposure. The discussion will translate these developments into directors’ duties: setting AI strategy and risk appetite, instituting model governance and inventories, strengthening data governance, overseeing cybersecurity and incident readiness and ensuring decision‑useful reporting where owners and directors often overlap. Panelists will explore practical considerations, such as how these developments are affecting directors’ and officers’ insurance and how they may be reshaping the interaction between outside counsel and the general counsel/corporate secretary.