Nearly Half to Prioritise AI Adoption as a 2026 Strategic Priority with 70% Placing Digital Transformation at the Top of Board Agendas

Singapore, November 28, 2025 – Amid escalating economic and geopolitical uncertainty, nearly half of governance leaders 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 2026report, 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.
According to the report, 57% of organisations in Asia have already incorporated AI into one or more areas of their operations, with 70% citing digital transformation, including AI risks and opportunities, as the most pressing board agenda topic for 2026, closely followed by growth strategies (68%). In comparison, only 9% prioritise shareholder activism and 13% focus on 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.
Dottie Schindlinger, Executive Director of the Diligent Institute, said, “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.”
Agentic AI Reveals Deeper Governance Concerns
Agentic AI, systems that act autonomously on behalf of users, have emerged as a major governance concern. While 86% of respondents in Asia see task efficiency and productivity as the greatest benefits to agentic AI, 64% cite data quality and privacy concerns as top risks, and 61% identify a lack of governance processes to guide AI decision-making. Governance professionals increasingly recognise 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 7 in 10 (68%) respondents identify 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.
Other key findings from the report include:
- One-third (33%) of respondents are creating AI committees or working groups, while 37% now require CTO/CIO presence in board meetings for AI discussions.
- When asked how to optimise governance processes, 72% want more strategic planning time and 53% seek increased exposure to external experts.
Terence Quek, CEO of Singapore Institute of Directors, adde, “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.”
To download the full Diligent Institute report examining governance outlook trends in Asia and Australia, click here.
You may also like
-
Milestone Launches Vision Language Model (VLM)
-
Denodo Recognised as a Leader in the 2025 Gartner® Magic Quadrant™ for Data Integration Tools for the Sixth Consecutive Year
-
Trend Micro Predicts 2026 as the Year Cybercrime Becomes Fully Industrialised Inbox AI Overview
-
Lumen Technologies and Palo Alto Networks collaborate to increase cybersecurity capabilities in the Asia-Pacific region
-
Salesforce Study Finds 91% of Singapore Tech Leaders View Data Overhaul as Key to AI Success
