Nearly Half to Prioritise AI Adoption as a 2026 Strategic Priority with 70% Placing Digital Transformation at the Top of Board Agendas

SINGAPORE: Amid escalating economic and geopolitical uncertainty, nearly half of governance leaders in Asia (48%) are prioritising AI adoption as a top strategic priority for 2026 – ahead of pursuing growth opportunities (45%), managing cybersecurity risks (39%) and managing geopolitical risks (32%). Rather than letting uncertainty hold them back, Asia boards are betting on innovation as their path forward.

The APAC Governance Outlook 2026 report, published by the Diligent Institute in collaboration with the Singapore Institute of Directors (SID) and the Governance Institute of Australia (GIA), surveyed leaders in Asia to capture the top priorities shaping the region’s boardrooms in the year ahead.

According to the report, 57% of organisations in Asia have already incorporated AI into one or more areas of their operations, with 70% citing digital transformation, including AI risks and opportunities, as the most pressing board agenda topic for 2026, closely followed by growth strategies (68%). In comparison, only 9% prioritise shareholder activism and 13% focus on M&A opportunities, indicating a stronger emphasis on internal transformation over external moves. However, as AI adoption accelerates, organizations and boards face a critical challenge: governance frameworks are struggling to keep pace with technological implementation.

“In the era of AI, the greatest risk isn’t the technology itself, but the governance gap that it is creating,” said Dottie Schindlinger, Executive Director of the Diligent Institute. “By developing strong expertise and robust oversight, organisations can secure a competitive advantage and navigate uncertainties in the year ahead with confidence.”

Agentic AI Reveals Deeper Governance Concerns

Agentic AI – systems that act autonomously on behalf of users – has emerged as a major governance concern. While 86% of respondents in Asia see task efficiency and productivity as the greatest benefits to agentic AI, 64% cite data quality and privacy concerns as top risks, and 61% identify a lack of governance processes to guide AI decision-making. Governance professionals increasingly recognise agentic AI's transformative potential but acknowledge significant gaps in their ability to manage these systems safely.

The root cause is a widening gap in digital expertise: nearly 7 in 10 (68%) respondents identify digital technology skills as a critical board development need; however, only 31% have mandated director training on AI, and just 28% have recruited directors with AI expertise.

Other key findings from the report include:

• One-third (33%) of respondents are creating AI committees or working groups, while 37% now require CTO/CIO presence in board meetings for AI discussions.
• When asked how to optimise governance processes, 72% want more strategic planning time and 53% seek increased exposure to external experts.

“In today’s AI-driven business landscape, corporate governance has become a critical business imperative, and the stakes have never been higher,” said Terence Quek, CEO of Singapore Institute of Directors. “To navigate this new reality, boards must prioritise director education and sustained capability development to build the resilience needed to thrive amidst increasing technological complexity.”

To download the full Diligent Institute report examining governance outlook trends in Asia and Australia, click here.

About the Report

The Diligent Institute, in collaboration with the Singapore Institute of Directors (SID) and the Governance Institute of Australia (GIA), surveyed 187 governance leaders across Asia-Pacific from late July to early September 2025, including board directors, company secretaries, chief legal officers, chief risk officers, and other governance professionals from public, private, and not-for-profit organisations spanning multiple sectors.

About Diligent Institute

Diligent Institute informs, educates, and connects leaders to champion governance excellence. We meet this mission through original, cutting-edge research on critical corporate governance issues, certificate programs for corporate leaders, peer networks that convene directors and executives to share best practices, and recognition programs that celebrate governance excellence. Diligent Institute was founded in 2018 as Diligent’s global corporate governance research arm and think tank. Learn more at diligentinstitute.com.

About Diligent

Diligent is the AI leader in governance, risk and compliance (GRC) SaaS solutions, helping more than 1 million users and 700,000 board members to clarify risk and elevate governance. The Diligent One Platform gives practitioners, the C-Suite and the board a consolidated view of their entire GRC practice so they can more effectively manage risk, build greater resilience and make better decisions, faster. Learn more at diligent.com.

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Fonte: Business Wire