AI adoption rivals M&A as a 2026 priority
This article originally appeared in our January 29th edition of the Diligent Minute Newsletter. For more insights like these, delivered straight to your inbox, subscribe here.
AI is top of mind for directors this year, the connective tissue linking growth, risk, human capital and compliance. That’s what we found in our What Directors Think 2026 report, an annual survey of U.S. public company directors produced in partnership with Diligent Institute and Corporate Board Member. More than 200 directors shared how they’re navigating strategy, risk, talent and governance in an environment defined by volatility and technological change. The result is a rich window into what’s really on board agendas in 2026 — and what may be missing.
One in four boards view technological disruption, including AI, as among the greatest opportunities for their companies, yet only a small minority cite it as a top risk — highlighting an optimism that may not fully account for how quickly AI‑native competitors can upend business models.
Some headline AI‑related stats from the survey:
- 40% of directors say pursuing growth through M\&A and strategic partnerships is a top priority for 2026, while 38% cite deploying AI technology across the business and 38% point to growth through new products or new markets.
- 42% say technology adoption and integration will be a primary focus of capital investment in 2026, outpacing M&A and market expansion.
- Just 3% of boards report that AI is fully embedded in risk oversight and decision‑making; 20% use AI tools regularly, 33% use them minimally and 40% don’t use AI at all in this context.
- 50% of directors expect AI and technology‑related regulation to demand the greatest compliance‑related board attention in 2026, and 41% say AI and technology regulation is the most underestimated area of compliance oversight today.
- When asked how to strengthen risk oversight, 26% want enhanced use of AI‑powered data and technology tools, and 40% say access to AI‑powered technology for board work and oversight would help optimize governance processes overall.
Behind these figures is a widening governance gap
While AI dominates strategic conversations and investment plans, only 8% of directors say their board has strong AI expertise, and 40% rank technological developments, including AI, among the most challenging issues to oversee. Boards are attempting to close this gap through composition, increasingly looking for directors who can pair traditional governance experience with practical, credible AI fluency.
Boards’ own use of AI also lags their ambitions
Despite the surge in digital tools like board portals, secure messaging and AI‑assisted briefings, only about one in five boards use AI‑powered technology regularly to support risk oversight and strategic decision‑making, and very few have fully embedded AI into their processes. Directors themselves point to AI‑enabled analytics and dashboards as one of the most powerful levers to enhance both risk and compliance oversight, suggesting many recognize the gap and are actively looking for practical ways to close it.
Workforce implications are real and rising
Finally, the survey underscores that AI is fundamentally a people and skills story. Directors expect skills development and reskilling for emerging technologies such as AI and broader workforce strategy to consume substantial board time in 2026, even as workforce investment overall remains relatively underprioritized. They also anticipate that productivity monitoring, job redesign and redeployment, and the ethical use of AI in workforce management will require ongoing, deeper board attention.
The mandate for 2026
Taken together, the findings paint a clear mandate for boards: treat AI not as a discrete project, but as a cross‑cutting governance challenge that touches strategy, risk, compliance and talent. The boards that will lead in this next chapter are those that pair bold bets on AI with equally rigorous oversight — building the expertise, data and governance structures to ensure AI becomes a durable source of advantage, not an underappreciated source of risk.
Get the insights: Download your copy of What Directors Think 2026 here.
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