INTELLIGENT TECHNOLOGY: GOVERNANCE
AI governance gaps widen as APAC boards prioritise innovation for 2026
Amid escalating economic and geopolitical uncertainty nearly half of APAC governance leaders( 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 %).
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 shows rather than letting uncertainty hold them back, Asian boards are betting on innovation as their path forward.
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. 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.”
Agentic AI systems that act autonomously on behalf of users has 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.
However, as AI adoption accelerates organisations 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”
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.
“ In today’ s AI-driven business landscape corporate governance has become a critical business imperative and the stakes have never been higher” said Terence Quek, CEO, Singapore Institute of Directors.“ 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.” p
30 INTELLIGENTCIO APAC www. intelligentcio. com