University and other institutional boards are facing renewed scrutiny over how they oversee AI risk as AI expands into core operations. KPMG’s global risk chief argues that many boards are “sleepwalking into the AI era,” contrasting leaders who actively pursue AI transformation with directors who fail to engage with AI governance. KPMG and INSEAD framed a set of AI governance principles for boards, emphasizing strategic governance, baseline AI fluency for directors, and tighter controls over automated outputs that can undermine human accountability. The guidance stresses that AI oversight can’t be limited to productivity narratives; boards must ensure workforce redesign and accountability for decisions that affect outcomes. As institutions increase reliance on automated systems for student services, compliance, and research workflows, governance expectations may increasingly become board-level risk management requirements—not only technical policies.