Amid escalating economic and geopolitical uncertainty, nearly half of governance leaders in Asia (48 percent) are prioritizing artificial intelligence (AI) adoption as a top strategic priority for 2026, a recent report showed.
The number was ahead of pursuing growth opportunities (45 percent), managing cybersecurity risks (39 percent) and managing geopolitical risks (32 percent), 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) said last Tuesday.
It noted rather than letting uncertainty hold them back, Asia boards are betting on innovation as their path forward.
According to the report, 57 percent of organizations in Asia have already incorporated AI into one or more areas of their operations, with 70 percent citing digital transformation, including AI risks and opportunities, as the most pressing board agenda topic for 2026, closely followed by growth strategies (68 percent).
In comparison, only 9 percent prioritize shareholder activism and 13 percent focus on merger and acquisition (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,
“By developing strong expertise and robust oversight, organizations can secure a competitive advantage and navigate uncertainties in the year ahead with confidence,” said Dottie Schindlinger, Executive Director of the Diligent Institute.
Meanwhile, agentic AI, systems that act autonomously on behalf of users, have emerged as a major governance concern.
While 86 percent of respondents in Asia see task efficiency and productivity as the greatest benefits to agentic AI, 64 percent cite data quality and privacy concerns as top risks, and 61 percent identify a lack of governance processes to guide AI decision-making.
Governance professionals increasingly recognize 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 seven in ten (68 percent) respondents identify digital technology skills as a critical board development need; however, only 31 percent have mandated director training on AI, and just 28 percent have recruited directors with AI expertise.
The report also showed one-third (33 percent) of respondents are creating AI committees or working groups, while 37 percent now require Chief Technology Officer (CTO)/Chief Investment Officer (CIO) presence in board meetings for AI discussions.
When asked how to optimize governance processes, 72 percent want more strategic planning time and 53 percent 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,
“To navigate this new reality, boards must prioritize director education and sustained capability development to build the resilience needed to thrive amidst increasing
technological complexity,” said Terence Quek, Chief Executive Officer of Singapore Institute of Directors.
The Diligent Institute 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 organizations spanning multiple sectors.
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