Amid rising economic and geopolitical uncertainties, nearly half of Asian governance leaders are set to prioritize artificial intelligence (AI) adoption as a key strategic goal by 2026. According to the APAC Governance Outlook 2026 report, published by the Diligent Institute in partnership with the Singapore Institute of Directors (SID) and the Governance Institute of Australia (GIA), 48% of organizations in the region see AI as a top priority, surpassing growth opportunities, cybersecurity, and geopolitical risk management. Additionally, 70% of boards are emphasizing digital transformation, including AI-related risks and opportunities, as a critical agenda item for the upcoming year.

AI Adoption and Strategic Priorities in Asia

Currently, 57% of Asian organizations have integrated AI into various operational areas. The report highlights a strong internal focus, with 68% of organizations citing digital transformation and AI as their main boardroom agenda for 2026, followed closely by growth strategies at 68%. In contrast, external initiatives like shareholder activism and M&A activities receive less attention, at 9% and 13%, respectively, indicating a preference for internal innovation over external expansion.

Despite the rapid pace of AI adoption, organizations face significant governance challenges. Many boards struggle to develop frameworks that keep pace with technological advancements, risking governance gaps that could undermine their strategic initiatives.

Governance Challenges and the Rise of Agentic AI

Agentic AI systems—those capable of autonomous actions—pose emerging governance concerns. While 86% of respondents recognize improvements in task efficiency and productivity as key benefits, 64% express worries about data quality and privacy, and 61% highlight the lack of governance processes to guide AI decision-making.

Skills shortages further complicate governance efforts. Approximately 68% of respondents identify digital technology expertise as a critical area for board development, yet only 31% have mandated AI training for directors, and just 28% have recruited directors with AI expertise.

In response, one-third of organizations are establishing AI committees or working groups, and 37% include CTOs or CIOs in board meetings focused on AI discussions. Many leaders seek more strategic planning time (72%) and greater exposure to external expertise (53%) to better manage AI risks and opportunities.

As AI continues to transform the corporate landscape, strengthening governance frameworks and developing digital expertise remain essential for organizations aiming to stay competitive and responsible in the AI era.

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• https://ai-techpark.com/diligent-nearly-half-of-asian-organisations-will-prioritise-ai-by-2026/