Corporate boards often wait for warning signs before confronting technological disruption, but this reactive approach may be too late. Strategic adviser Itay Sagie argues that directors should proactively assess emerging threats like AI and quantum computing while businesses still appear successful, rather than waiting for performance to deteriorate.

Sagie recommends boards shift focus from adoption costs to the cost of inaction. He asks: what happens if competitors deploy AI to reduce costs, accelerate delivery, or launch faster products? Companies may lose pricing power and customer loyalty before financial damage appears. This analysis should quantify risks of falling 12, 18, or 24 months behind emerging capabilities.

Boards should challenge management when revenue grows and strategies appear sound, not when problems emerge. Sagie suggests asking which business segments would prove most vulnerable to automation, which revenue streams depend on friction, and which products could become commoditized. These uncomfortable questions matter most during periods of apparent success.

Directors must push executives to design their own worst competitor, forcing offensive thinking about pricing, team structure, and technology adoption. Companies that wait for disruption to manifest financially often discover their market position has already eroded beyond recovery.