Reputation and brand management oversight: A strategic imperative for boards in the age of AI 

An expanding frontier of risk oversight 

Reputation and brand management oversight involves strategically governing how a brand is perceived and managed in the marketplace. Brand management focuses on creating a coherent narrative that resonates with target audiences, while reputation refers to the collective perception of stakeholders based on their interactions with the organization. 

Effective board governance in this area is essential for organizations to prevent reputational crises and ensure long-term growth. In an evolving and volatile risk environment, managing reputation and brand has shifted from being a byproduct of operational success to a strategic asset that requires active oversight. Boards of directors are uniquely positioned to protect and guide this essential asset amid the distinct challenges presented by artificial intelligence (AI). These factors have altered the speed, scope and complexity of managing reputation and brand, compelling boards to place reputation oversight at the forefront of their governance strategies. 

The strategic importance of reputation 

Reputation is a critical asset that influences stakeholder relationships — including those with investors, employees, customers, regulators and communities. A strong reputation can enhance customer loyalty, engagement, access to capital and long-term profitability. Conversely, a damaged reputation can lead to financial losses, regulatory scrutiny, talent attrition and erosion of shareholder value. 

Trust is a valuable commodity, and boards must recognize reputation as a key performance indicator (KPI) that requires continuous assessment, protection and enhancement. 

The evolving risk landscape 

Social media — and AI tools to automate social media — have significantly accelerated the pace and breadth of public discourse. A genuine or perceived mistake can escalate into a major crisis within hours. Hashtag movements, viral content and influential voices can quickly bolster or undermine years of reputational investment. The decentralized structure of social media also allows for the unchecked spread of misinformation, fake news and targeted attacks—forcing organizations to engage in reactive damage control. 

AI presents both opportunities and threats to reputation management. In one instance, AI-driven tools can offer advanced sentiment analysis, predictive monitoring and crisis forecasting, enabling organizations to take proactive measures. In another instance, AI technologies — such as deepfakes, generative content and automated misinformation campaigns — can unpredictably threaten corporate reputations. Boards must understand AI’s ethical, legal and operational implications while ensuring its responsible application within the organization.