According to the "Asia-Pacific Governance Outlook 2026" report jointly released by the Diligent Institute, the Singapore Institute of Directors (SID), and the Australian Governance Institute (GIA), an increasing number of Asian companies are making artificial intelligence (AI) a top priority in their future strategies. In the face of growing economic and geopolitical uncertainties, nearly 48% of governance leaders stated that AI adoption has become a top strategic priority for 2026. This proportion is higher than pursuing growth opportunities (45%), managing cybersecurity risks (39%), and addressing geopolitical risks (32%).

The report shows that 57% of Asian organizations have introduced AI technology in certain areas of their operations, while 70% of companies view digital transformation as the most urgent board agenda item for 2026, followed closely by growth strategies (68%). In contrast, only 9% of companies prioritize shareholder activism, and 13% focus on merger and acquisition opportunities, indicating that companies are more focused on internal transformation than external expansion. However, with the acceleration of AI adoption, organizations and boards are facing a significant challenge: governance frameworks are not keeping pace with the speed of technological implementation.

Dottie Schindlinger, Executive Director of the Diligent Institute, said, "The biggest risk in the AI era is not the technology itself, but the governance gap it creates." She emphasized that by cultivating strong expertise and robust oversight mechanisms, companies can gain a competitive advantage and move forward confidently in uncertain environments.

The report also highlights that agent AI (systems that autonomously perform tasks on behalf of users) has become a major concern in governance. Although 86% of respondents believe that agent AI can improve task efficiency and productivity, 64% said data quality and privacy issues are the main risks, and 61% pointed out the lack of governance processes to guide AI decisions. Governance professionals are increasingly aware of the transformative potential of agent AI, but they also acknowledge significant capability gaps in managing these systems securely.

The report shows that nearly 70% (68%) of respondents believe digital technology skills are a key need for board development, but only 31% of companies have mandated directors to receive AI training, and only 28% have hired directors with AI expertise. To address this challenge, 33% of respondents are forming AI committees or working groups, while 37% of companies require the Chief Technology Officer or Chief Information Officer to participate in AI-related discussions during board meetings. In the face of increasing technological complexity, boards must prioritize director education and continuous capability development to enhance the resilience of the organization.

Key Points:

🌟 Nearly 48% of Asian companies are making AI a top priority for 2026, with digital transformation becoming the primary agenda item.

🔍 Agent AI brings efficiency improvements, but also raises concerns about data privacy and governance processes.

📈 68% of governance leaders believe that improving digital technology skills is essential for the board, but only a few companies have taken action.