According to the APAC Governance Outlook 2026 report by the Diligent Institute, 48% of governance leaders in Asia are prioritising AI adoption as a top strategic focus for 2026.
The report also revealed that other priorities include pursuing growth opportunities (45%), managing cybersecurity risks (39%) and managing geopolitical risks (32%).
“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.”
Incorporating AI in operations
Published in collaboration with the Singapore Institute of Directors (SID) and the Governance Institute of Australia (GIA), the report also revealed that 57% of organisations in Asia have already incorporated AI into one or more areas of their operations.
The majority (70%) cited digital transformation, including AI risks and opportunities, as the most pressing board agenda topic for 2026.
Most respondents in Asia (86%) consider task efficiency and productivity as the most significant benefits of agentic AI.
However, 64% cite data quality and privacy concerns as top risks. Some 61% said a lack of governance processes to guide AI decision-making.
There is also a widening gap in digital expertise, with 68% respondents identifying 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.
Terence Quek, CEO of the Singapore Institute of Directors, said: “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.”
