The Advisors' Blog

AI-related goals are making their way into executive compensation plans – which isn’t too surprising since many companies are aiming to use new technology to transform their business in one way or another. This Equilar blog looks at how companies are incorporating these metrics, based on 2025 disclosure examples. Here are a few takeaways:

1. Most companies that have incorporated AI metrics have done so within their annual incentive plans. Example metrics include capturing opportunities for revenue growth, driving AI literacy, and AI development and advancement.

2. In one example of putting an AI-focused performance objective into a long-term plan, the company still uses an annual measurement to assess the objective of deploying AI tools to enhance productivity. Equilar notes this approach reflects how the fast-moving nature of AI makes it difficult for companies to set multi-year targets.

3. At least one company is planning to take a scorecard approach in 2026, where AI serves as the strategic goal modifier.

The blog notes that at one company, the AI performance metric is replacing “citizenship and sustainability measures.” It’s not too hard to tell what’s hot and what’s not right now – “ESG” is out, “AI” is in – but hopefully we can use lessons learned from ESG to deploy novel AI-focused metrics in an even more effective way.

– Liz Dunshee