What Directors Think Report Exposes Growing Divide Between Risk Complexity and Board Preparedness According to Diligent and Corporate Board Member

America's boardrooms are racing to overhaul their scenario planning processes, but most are under-prepared to deal with the complexity. A new survey of public company directors exposes a widening 2026 readiness gap: while 84% of directors have significantly changed their approach to address escalating risks, only 10% are using AI tools to manage the growing complexity. These and other findings are detailed in the 2026 What Directors Think report, which is an annual partnership between Diligent, the AI leader in GRC SaaS solutions, and Corporate Board Member, a leading publication for public company directors.

Boards are expanding scenario planning at unprecedented speed, yet most still rely on traditional processes

Directors are fundamentally transforming their approach to scenario planning, with nearly half (49%) expanding the scope of each scenario considered, 46% increasing time spent on scenario planning, 36% running a wider range of scenario types, and roughly a quarter engaging more internal stakeholders (24%) and external experts (22%). This expansion of scenario planning generates significantly more data and complexity, yet most boards aren’t leveraging the right tools to streamline it.

"Board-level AI adoption remains nascent not because directors don't see the value, but because many lack the safeguards, best practices, and governance frameworks needed to deploy AI responsibly in the boardroom," said Dottie Schindlinger, Executive Director of Diligent Institute. "The opportunity now is to close that gap with structured approaches that boards can trust."

Key findings from the report include:

AI adoption in the boardroom is broad but not deep. Board-level use of AI for risk and strategy oversight is nascent. While 66% of boards report using AI in the boardroom, only 3% have fully integrated AI into their risk oversight and strategic decision-making. When examined more closely, 40% do not use AI at all for risk oversight, 33% use it minimally, 20% use it moderately, and only 3% report extensive use.

AI and M&A lead 2026 growth plans. While 38% of directors identify AI deployment as a leading organizational growth priority for 2026 and 40% are prioritizing growth via M&A or partnerships, most boards continue to rely on more manual methods for their own scenario planning and risk oversight – revealing a clear gap between corporate AI strategy and boardroom practice.

Technology investment leads 2026 capital allocation. 42% of directors expect to invest the most capital in technology adoption and integration, supporting digital transformation initiatives.

Crisis planning is zeroing in on cyber, economic, and regulatory threats. Boards are concentrating crisis exercises on the most likely, high-impact threat areas, including cyber events and data breaches (63%), economic shocks (58%), and regulatory or policy shifts (56%).

Directors see three levers to strengthen risk oversight. When asked what would most improve their risk oversight capabilities, directors identified: more frequent and structured full-board risk discussions (47%), a clearer link between risk oversight and strategy setting (32%), and enhanced use of AI-powered data and technology tools (26%).

“The research shows that boards are doubling down on crisis preparedness for cyber risks, economic shocks, regulatory changes and supply chain disruptions, among many other events, but all of these risks don't evolve in isolation,” says Melanie C. Nolen, Corporate Board Member’s Research Director. “The opportunity isn't to replace human judgment, but to strengthen it with tools that can track how these threats intersect in real time.”

Download the comprehensive report for actionable insights board leaders can use to navigate a volatile year ahead, and for detailed findings on scenario planning, AI adoption, M&A priorities, and board investment strategies for 2026.

About What Directors Think 2026

What Directors Think is an annual survey of public company boardrooms. The 2026 edition reflects responses from 200 U.S. corporate directors, fielded in September–October 2025 across industries and company sizes, and was conducted in partnership between Diligent Institute and Corporate Board Member.

About Corporate Board Member

Corporate Board Member, a division of Chief Executive Group, has been the market leader in board education for 20 years. The quarterly publication provides public company board members, CEOs, general counsel and corporate secretaries decision-making tools to address the wide range of corporate governance, risk oversight and shareholder engagement issues facing their boards. Corporate Board Member further extends its thought leadership through online resources, webinars, timely research, conferences and peer-driven roundtables. The company maintains the most comprehensive database of directors and officers of publicly traded companies listed with NYSE, NYSE Amex and Nasdaq. Learn more at boardmember.com.

About Diligent Institute

Diligent Institute informs, educates, and connects leaders to champion governance excellence. We meet this mission through original, cutting-edge research on critical corporate governance issues, certificate programs for corporate leaders, peer networks that convene directors and executives to share best practices, and recognition programs that celebrate governance excellence. Diligent Institute was founded in 2018 as Diligent’s global corporate governance research arm and think tank. Learn more at diligentinstitute.com.

About Diligent

Diligent is the AI leader in governance, risk and compliance (GRC) SaaS solutions, helping more than 1 million users and 700,000 board members to clarify risk and elevate governance. The Diligent One Platform gives practitioners, the C-Suite and the board a consolidated view of their entire GRC practice so they can more effectively manage risk, build greater resilience and make better decisions, faster. Learn more at diligent.com.

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