Generative AI has already transformed how governance, risk and compliance (GRC) professionals work — streamlining everything from data analysis and 

But 2026 is set to mark yet another gear shift: the continued rise of 

 — intelligent systems that don’t just generate insights but can act on them within defined parameters.

This evolution, from AI as an assistant to AI as an active participant in governance, is set to rewrite the playbook (again!) for board directors, GRC leaders and internal auditors alike.

In this article, we explore this shift — and other emerging AI trends that will redefine GRC in the year ahead — along with how leading organizations are preparing to harness these innovations responsibly.

1. From generative to agentic AI: The next leap for GRC

, agentic systems are now capable of initiating workflows, monitoring controls and even recommending or executing remedial actions under human oversight.

From a GRC perspective, imagine a system (for example) that can recognize a potential policy conflict, cross-reference it with prior board resolutions, draft a briefing and schedule review time — all while maintaining full transparency and audit trails. Such a concept is a glimpse of what’s already feasibly possible when AI is trained for governance and control rather than just general productivity.

This evolution will push GRC functions to expand their frameworks — from evaluating “model risk” to governing “agent behavior.” As these digital agents become integral to how organizations operate, governance professionals must ensure accountability and explainability remain at the core.



Start adapting your frameworks now for AI systems that 

, not just assist. Define clear escalation paths for AI-driven decisions, establish audit trails for every automated action and ensure human oversight remains firmly in control.

The shift toward continuous assurance — monitoring controls and risk exposure in real time — continues to accelerate. AI-driven analytics can now assess entire data populations, not just samples, detecting anomalies, policy deviations, or compliance lapses as they happen.

 allow anyone in audit, risk or compliance to query complex datasets conversationally and receive immediate, actionable insight. It’s turning what used to take days of technical analysis into moments of intuitive discovery.

These same capabilities are being extended across governance processes — from board preparation to risk assessment — enabling professionals to keep pace with rapid regulatory and operational change.

. Start small — identify a few control areas or risk indicators where constant monitoring could deliver the greatest impact. Use 

 to surface insights faster and support better decision-making at every level.

3. Integrated governance across the enterprise

The line between board governance, risk and compliance is blurring — and AI is accelerating that convergence. For instance, intelligent tools are now able to 

maintain global entity data automatically

, flag discrepancies across jurisdictions, and draft filings or ownership updates based on live data feeds.

At the board level, AI-powered meeting preparation will continue to transform 

how directors consume information in ever more sophisticated ways

 — condensing hundreds of pages of material into clear, contextual briefings that support faster, better-informed decision-making.

In the risk domain, AI has already begun to 

, comparing an organization’s public disclosures, peer performance and regulatory filings to identify blind spots. The result is a more unified, real-time view of enterprise risk — one that’s far more forward-looking than traditional reporting cycles could offer.

 Use AI to unify governance, compliance, and risk data

 for a single, trusted view of your organization. This integration enables faster decision-making, improves transparency, and strengthens enterprise resilience

4. Audit and model governance: The new skill set

Internal audit teams are now treating AI models and data pipelines as auditable entities in their own right. Model governance, bias testing and data lineage validation are becoming part of the standard assurance toolkit.

As a result, new roles are emerging — AI audit specialists, assurance architects, model risk officers — tasked with ensuring that intelligent systems remain ethical, explainable and effective. This isn’t replacing the human auditor; it’s expanding their scope, combining judgment with data-driven insight.

 Expand your audit lens to include AI. Understand how models are trained, validated and monitored. 

 within your team today will future-proof your assurance function for tomorrow.

5. Ethics, culture and the human element of AI

AI is also reshaping how organizations manage ethics and company culture. 

 can detect patterns in employee feedback, surface emerging cultural risks and help compliance teams intervene early.

Used responsibly, these systems strengthen integrity rather than threaten it. They help leaders understand sentiment, trust and behavior — insights that are increasingly vital in a world where reputation can shift overnight.

The future of ethical governance will rely as much on AI-powered intelligence as on human empathy and leadership.

 Treat culture as a measurable risk domain. Use 

 to proactively identify ethical concerns or tone-at-the-top issues before they escalate. Combine technology with empathy to strengthen organizational integrity.

Perhaps the most exciting aspect of this evolution is accessibility to insight. The tools of advanced analytics — once reserved for specialists — are now available to every professional in governance, audit and compliance.

Conversational interfaces and contextual AI assistance are turning data complexity into clarity. Teams can focus less on finding information and more on interpreting what it means for their organization’s strategy, risk appetite, and resilience.

AI isn’t taking GRC professionals out of the loop — it’s putting them more firmly in control.



accessible across all levels of governance and assurance

 so that insights can inform strategy, not just reporting. AI’s true value emerges when it’s democratized.

The road ahead: AI as a partner in governance

In 2026 and beyond, governance will become both smarter and more human. The systems we build will not just automate, but interpret. They’ll not just report on risk, but anticipate it.

To lead effectively in this era, GRC professionals will need to balance innovation with integrity — embedding AI within control frameworks, defining clear oversight mechanisms, and upskilling themselves and their teams to lead confidently in an intelligent ecosystem.

The AI era of GRC has arrived. Learn to lead it at Elevate 2026

Generative and agentic AI are no longer emerging technologies — they are becoming the operational backbone of governance, risk and compliance. The challenge now is not whether to adopt AI, but how to lead responsibly within it.

That’s why the GRC community will come together at 

 — three days in Atlanta dedicated to mastering the AI era of governance.

Join your peers to explore hands-on training, hear from industry experts, and gain the tools and insights to prepare for pivotal boardroom moments.

Spaces are limited for Elevate 2026 — the only event dedicated to AI-powered GRC. Be among the select few leaders defining the next era of trust and oversight.

Join the vanguard

6 AI trends for governance, risk and compliance professionals in 2026

This article originally appeared in our November 6 edition of the Diligent Minute Newsletter. For more insights like these, delivered straight to your inbox, subscribe

Cyber threats, AI disruption, and geopolitical instability are reshaping the audit landscape — and 4,000 audit leaders across 131 countries have weighed in. Whether you’re on the internal audit team, serving on your board’s audit committee, or working in partnership with them, the IIA’s 2026 Global Risk in Focus report has insights for you. This year’s edition reveals the key risk areas
to focus on and highlights how risk is changing across regions and sectors (with tips on how to achieve compliance with updated 

2026 Global Risk in Focus: Top risks for internal audit (Cybersecurity, AI, Geopolitics)

 remains the number one concern for organizations worldwide, with 73% of respondents naming it a top five risk. 

pronounced in North America and Europe, where more

than 80% of organizations put it at the top of their list.

, has seen the second largest jump in perceived risk with an increase of 9 percentage points year-over-year. Organizations are racing to implement new technologies,
but many are running into infrastructure and skills gaps.

3.Geopolitical uncertainty leapt 10 percentage points 

globally, now ranking sixth overall. North America saw the sharpest spike (up 19 points), driven by shifting U.S. trade policies and global conflicts.

4.Business resilience (47%) and human capital (43%) round out the top global risks.

 Organizations are feeling the pressure to shore up supply chains and crisis response capabilities. Meanwhile, talent shortages, wage competition, and generational shifts keep human capital risk firmly on the agenda. 

 Regulatory change (41%) is closely linked to geopolitical risk. Where political uncertainty is high, regulatory challenges follow.

How audit committees can close the risk-to-audit gap

I asked Curtis Warfield, experienced public company director, Audit Committee Chair, and former Chief Audit Executive, his thoughts on bridging the risk-to-audit gap. He outlined five steps:

“As an Audit Chair, I see the gaps as driven by limited expertise in emerging areas like AI and digital disruption, audits taking longer than planned, and the need to balance enterprise-wide coverage with limited resources.” says
Warfield. 

“It’s a risk–reward trade-off,” he goes on. “Sometimes management also has major deliverables in progress, which limits timing for audits. Audit committees can help by understanding these constraints, supporting skills development, and encouraging dynamic adjustments to the plan when new or fast-moving risks emerge.”

“Internal audit should not just police — it should partner,” says Warfield. “The key is alignment with senior leadership so internal audit can help ensure technology risks are managed without slowing innovation.” He adds, “Audit leaders should focus on being strategic partners, not just reviewers, and work closely with the business to embed technology risk considerations into
transformation projects from the start.”

Audit committees add the most value when they understand the process behind the audit plan. “Members should take time to learn how the ERM process connects to strategy and how audit allocates time across the risk
profile,” advises Warfield. “That understanding makes it easier to have meaningful dialogue about priorities. Regular communication and progress updates help keep the plan dynamic and aligned with emerging risks.”

4.Support advisory work while maintaining independence

“Tone at the top is critical,” Warfield emphasizes. “The audit committee and board chair can reinforce that internal audit’s role is not to police management, but to be a strategic partner while maintaining independence. It’s a delicate balance — audit must still provide objective assurance, but it can also offer valuable advisory input on AI governance,

, or scenario planning. Clear boundaries and communication make both roles possible.”

5.Build an agile, forward-looking partnership

Agility starts with alignment. “Everyone should understand the audit process, how it ties to enterprise risk and strategy, and how resources are deployed,” says Warfield. “The audit committee should be willing to adjust its agenda
throughout the year for new risks and ensure flexibility in hours and resources to respond to change. That’s how audit and the board can stay proactive and effective in uncertain environments.”

Looking to stay ahead of the curve on audit governance? Check out the 

IIA’s new Center for Audit Committee Leadership. 

The Center offers audit committee members tailored strategic advice, best practices, and educational resources to help ensure internal audit functions are effectively structured and integrated within your organization’s governance framework.

Bridging the gap: Why having a strategic audit function is critical right now

This article originally appeared in our October 23rd edition of the Diligent Minute Newsletter. For more insights like these, delivered straight to your inbox, subscribe

After months of buzz in the third quarter of 2024, many expected 2025 would finally spark a wave of IPOs and breathe new life into public markets. Instead, mounting economic pressures and sudden shifts in U.S. fiscal and trade policy have forced companies to reconsider even their most basic transaction strategies. Traditionally, when IPO activity slows, mergers and acquisitions pick up the slack. But this year, deal-making has slowed, raising a critical question for organizations everywhere: are they genuinely prepared for transactions in this climate?

2025 IPO slowdown and M&A outlook: Transaction readiness under pressure

We surveyed over 230 chief financial officers, general counsels and directors

 from public and private companies around the world about their growth strategies and transaction plans in this uncertain landscape, in partnership with Wilson Sonsini, 

, CFO Alliance, and the CFO Leadership Council. Here’s what they had to say:

Nearly half of organizations stay the course, with caveats

Interestingly, we found that nearly half of organizations (49%) are still prioritizing M&A or strategic partnerships in their growth strategies. “[Companies are] taking much longer to evaluate deals and are being more selective about opportunities,” NetSuite’s Ranga Bodla, Vice President of Field Engagement and Marketing at NetSuite explains.

Geopolitical uncertainty accounts for some of this hesitancy. Thirty-five percent of the senior leaders we surveyed cited it as a major challenge when it comes to their transaction plans. But many companies just don’t feel ready for complex transactions right now, calling out increased caution, adjusted valuation models and financial projections, and enhanced focus on due diligence and risk as their responses to economic uncertainty.

Confidence in organizational readiness to support a major transaction right now ranks just 5.7 on a scale from 1 to 10, even as 

 say they are prioritizing M&A or strategic partnerships in their game plans for growth. 

“We need to strengthen our governance structures to suit the current VUCA [volatility, uncertainty, complexity, ambiguity] environment,” one survey respondent bluntly declares.

Over half (56%) cited limited resources, over one third (35%) data access, and over one quarter (28%) a lack of experienced personnel as challenges in the transaction process, with many also calling for better defined roles (42%) and stronger board communication and support (31%).

Close the readiness gap: Integrated GRC, finance and AI to accelerate due diligence

But here’s what stuck out as a red flag to me: A mere 4% of organizations reported having fully integrated governance, risk compliance (GRC), and finance systems for transactions. Just 5% use 

, 10% financial reporting tools, 16% ERP software and 20% secure data rooms. All of these technologies can bolster 

, valuations, analysis and planning, and help companies learn about and act on deal opportunities faster. In fact, a full 60% still operate with siloed or only partially integrated platforms.

“Many organizations remain stuck in analog transaction processes,” my colleague Nithya Das, General Manager and Chief Legal Officer at Diligent, said. “Technology adoption directly addresses the operational risks companies frequently cite.”

In short, insufficient tools are holding too many corporate deal teams back, and inefficient processes are slowing them down.

If 2025 has taught us anything, it’s that you can’t control the external environment your organization operates in. But you can adapt to it, think proactively, and get your internal processes in order to support and prepare for transactions. “Companies can do a lot of things day-to-day to improve readiness for a potential transaction,” notes Rich Mullen, Partner at Wilson Sonsini.

Think digital workrooms that engage internal stakeholders and external advisors in activities from onboarding to planning.

Collaboration workflows that standardize due diligence and keep it on track. Secure communications channels for sensitive information, along with records, checklists, playbooks, and “lessons learned” logs stored in one centralized place. “Transaction readiness requires integrated preparation across people, processes, and technology,” Nithya reminds readers.

Nick Araco, CEO of the CFO Alliance, said that “the most effective finance leaders are turning the discipline of transaction readiness into a year-round capability.”

He explains how these leaders are “integrating lessons learned into their planning cycles and building internal muscle for deal execution. We’re also seeing growing interest in how AI can accelerate diligence, flag risks earlier, and free teams from manual work so they can focus on value creation.”

That’s a sentiment we apply to financial modeling, data analysis, enhanced due diligence and more in our report. As Bodla concludes: “The organizations that invest in these technological capabilities now will be better positioned to move quickly and confidently when the right opportunities arise.”

Delve into the details — and step up your own game for deal preparation — by downloading the full analysis: “

Diligent

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6 AI trends for governance, risk and compliance professionals in 2026

Bridging the gap: Why having a strategic audit function is critical right now

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