A new survey by the Diligent Institute, in collaboration with the Singapore Institute of Directors and the Governance Institute of Australia, reveals that nearly half of governance leaders in Asia—48%—plan to make AI adoption a top strategic priority by 2026. This comes amid growing economic and geopolitical uncertainty, with organizations turning to innovation as a key path forward rather than retreating from risk. The APAC Governance Outlook 2026 report, based on a survey of 187 governance professionals across the Asia-Pacific region from late July to early September 2025, found that 70% of organizations are placing digital transformation—including AI risks and opportunities—at the top of their board agendas. This is closely followed by growth strategies (68%), while only 9% prioritize shareholder activism and 13% focus on mergers and acquisitions, highlighting a strong internal focus on transformation over external moves. The report shows that 57% of organizations in Asia have already integrated AI into at least one area of their operations. However, despite this progress, governance frameworks are struggling to keep pace. Dottie Schindlinger, Executive Director of the Diligent Institute, warned that the greatest risk in the age of AI is not the technology itself, but the growing governance gap. “By developing strong expertise and robust oversight, organizations can secure a competitive advantage and navigate uncertainties with confidence,” she said. A key concern is the rise of agentic AI—systems capable of making autonomous decisions. While 86% of respondents see improved task efficiency and productivity as the main benefit, 64% are concerned about data quality and privacy, and 61% report a lack of governance processes to guide AI-driven decisions. The root of the challenge lies in a significant skills gap: 68% of respondents identified digital technology skills as a critical need for boards, yet only 31% have mandated AI training for directors, and just 28% have appointed directors with AI expertise. Terence Quek, CEO of the Singapore Institute of Directors, emphasized the urgency: “In today’s AI-driven business landscape, corporate governance has become a critical business imperative. Boards must prioritize director education and continuous capability development to build resilience in the face of increasing technological complexity.” The findings underscore a clear trend: as AI becomes central to business strategy, governance must evolve to match. Organizations that invest in board-level AI literacy, establish clear oversight mechanisms, and proactively address risks will be best positioned to lead in the years ahead.