Governance leaders are willing to leverage AI, with 64% of respondents identifying AI governance as the most critical skill for the next three years, according to the inaugural Global State of Legal Entity Compliance report from Diligent.
However, respondents worry about control: 38% are comfortable with AI completing basic actions without approval, while 36% are not.
New operating models
Most (74%) practitioners say their scope has expanded in the past two years, while almost half (46%) say workloads outpace headcount.
Expanding mandates are driving a need for new operating models, with almost half (47%) citing technology gaps as the single biggest barrier, followed by regulatory complexity (46%).
More than 50% of respondents noted at least one near-miss compliance event in the past year.
Governance leaders are positioned to drive greater board impact, with over half (56%) describing themselves as strategic advisors to the board. However, only 17% believe their board sees them that way.
Over half (52%) say their boards underestimate the complexity of the entity function, often viewing it as administrative rather than a strategic driver for risk, capital structure decisions, and growth.
Only 19% of practitioners have near-real-time visibility into their obligations. Most are working from delayed, incomplete data, often relying on spreadsheets to fill the gaps.
“Strategic leaders are using this moment to modernise their operating model—connecting entity data, board oversight, and AI-driven execution to strengthen governance, support faster and more confident decision-making and elevate the function’s role across the organisation,” said Amanda Carty, general manager, Compliance at Diligent said.
The Global State of Legal Entity Compliance report draws on a global survey of 309 senior practitioners from North America, Latin America, Asia Pacific, the Middle East, Europe and the United Kingdom.
