Nearly Half to Prioritise AI Adoption as a 2026 Strategic Priority with 70% Placing Digital Transformation at the Top of Board Agendas
SINGAPORE–(BUSINESS WIRE)–Amid escalating economic and geopolitical uncertainty, nearly half of governance organisations 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.
The survey says that 57% of businesses in Asia have already used AI in one or more parts of their operations. Digital transformation, which includes AI risks and opportunities, is the most important topic for boards to discuss in 2026, followed closely by growth strategies (68%). In contrast, only 9% of people prioritize shareholder activism and 13% focus on M&A potential. This shows that internal change is more important than external change. But as more and more companies use AI, they and their boards face a big problem: governance frameworks are having a hard time keeping up with the use of technology.
Dottie Schindlinger, Executive Director of the Diligent Institute, remarked, “The biggest risk in the age of AI isn’t the technology itself, but the gap in governance that it is making.” “By building strong expertise and good oversight, businesses can get an edge over their competitors and deal with the unknowns of the coming year with confidence.”
Agentic AI Shows More Serious Governance Issues
Agentic AI, which are systems that work on their own for people, has become a big worry for governance. In Asia, 86% of those who answered the survey said that task efficiency and productivity are the best things about agentic AI. However, 64% said that data quality and privacy issues are the biggest hazards, and 61% said that a lack of governance systems to guide AI decision-making is a big problem. Governance experts are becoming more aware of how agentic AI could change things, but they also recognize that they don’t have the skills to safely manage these systems.
The main problem is that people are becoming less skilled with digital technology. Almost 7 out of 10 (68%) respondents say that digital technology skills are a major necessity for board development, yet only 31% have required director training on AI and only 28% have hired directors with AI competence.
Other important things the report found are:
One-third (33%) of those who answered are setting up AI committees or working groups. Thirty-seven percent (37%) now require the CTO or CIO to be present at board meetings to talk about AI.
When asked how to improve governance procedures, 72% said they wanted more time for strategic planning, and 53% said they wanted to work with outside experts more often.
Terence Quek, CEO of the Singapore Institute of Directors, said, “Corporate governance has become a critical business imperative in today’s AI-driven world, and the stakes have never been higher.” “To get through this new reality, boards need to put director education and ongoing skill development at the top of their lists. This will help them become more resilient in the face of growing technological complexity.”
Click here to get the complete Diligent Institute research that looks at developments in governance in Asia and Australia.
The Report
From late July to early September 2025, the Diligent Institute, along with the Singapore Institute of Directors (SID) and the Governance Institute of Australia (GIA), surveyed 187 governance leaders from all over the Asia-Pacific region. These leaders included board directors, company secretaries, chief legal officers, chief risk officers, and other governance professionals from public, private, and not-for-profit organizations in a variety of fields.
About the Diligent Institute
Diligent Institute teaches, informs, and connects leaders to promote good governance. We achieve this goal by doing original, cutting-edge research on important corporate governance challenges, offering certificate programs for business leaders, creating peer networks that bring together directors and executives to share best practices, and giving awards to companies that do a great job of governance. Diligent Institute started in 2018 as Diligent’s global think tank and research center for corporate governance. Visit diligentinstitute.com to find out more.
What Diligent Does
Diligent is the top AI company for governance, risk, and compliance (GRC) SaaS solutions. It helps more than 1 million users and 700,000 board members understand risk and improve governance. The Diligent One Platform gives practitioners, the C-Suite, and the board a single picture of their whole GRC practice. This helps them manage risk better, build more resilience, and make decisions faster and better.