Artificial intelligence (AI) has overtaken growth, cybersecurity and geopolitical risks as a top priority for nearly half (48%) of governance leaders in Asia heading into 2026. This is according to the APAC Governance Outlook 2026 report by the Diligent Institute, developed with the Singapore Institute of Directors and the Governance Institute of Australia.
The shift in priorities is already visible in operations. The report found that 57% of organisations in Asia have implemented AI in at least one part of their operations. Digital transformation, including AI risks and opportunities, is the leading board topic for 2026, cited by 70% of respondents, followed by growth strategies (68%). Shareholder activism and mergers and acquisitions ranked far lower at 9% and 13%, respectively.
As adoption rises, boards are struggling to match the pace of technological rollout. “In the era of AI, the greatest risk isn’t the technology itself, but the governance gap that it is creating. By developing strong expertise and robust oversight, organisations can secure a competitive advantage and navigate uncertainties in the year ahead with confidence,” says Dottie Schindlinger, executive director of the Diligent Institute.
Agentic AI, which allows systems to act autonomously on behalf of users, is emerging as a key source of governance concern. While 86% of respondents expect improvements in efficiency and productivity, 64% cite data quality and privacy risks, and 61% point to a lack of governance processes to guide AI-led decisions. The findings show that governance professionals recognise the potential of agentic AI but acknowledge that they are not yet equipped to manage it safely.
A shortage of digital skills is widening the governance gap. Some 68% of respondents identify digital technology expertise as a critical board development need. Only 31% have mandated AI training for directors, and just 28% have appointed board members with AI expertise.
Boards are beginning to adjust their structures to keep pace. One third of organisations have created AI committees or working groups, while 37% now require chief technology officers or chief information officers to attend board meetings when AI is discussed. To strengthen governance, 72% of respondents want more time devoted to strategic planning and 53% want greater access to external experts.
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“In today’s AI-driven business landscape, corporate governance has become a critical business imperative, and the stakes have never been higher. 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,” says Terence Quek, chief executive officer of the Singapore Institute of Directors.
