Diligent Connections returned to Sydney, Singapore and Manila for its third year, bringing together APAC’s GRC leaders for a focused, real-world look at artificial intelligence’s (AI) growing impact. The event brought together expert panel members, including CISOs, legal counsels, policy advisors and board directors and provided practical and strategic insights into how AI is transforming the role of GRC professionals, from detecting risks to delivering faster and smarter decisions whilst balancing AI innovation with compliance and regulatory expectations.

As data volumes surge and compliance demands intensify, AI is becoming a powerful force in governance. Through expert panels and live demonstrations, attendees explored how to apply AI responsibly, align it with business goals, and keep human judgment at the centre of oversight.

Navigating AI governance: Balancing innovation, risk & compliance

Across all three Connections events, the panellists identified growing threats like ‘shadow AI’, which refers to AI tools used by employees without approval; and ‘AI creep’, where AI is integrated into legacy systems without oversight. A panellist highlighted that AI systems can sometimes operate with only 60% accuracy, producing erroneous results or ‘hallucinations’. This inaccuracy can obscure critical information from leaders, thereby introducing unforeseen risks and vulnerabilities for sensitive data.

Data sovereignty emerged as another critical concern. Australia’s ban on Deep Seek, a China-based AI tool, illustrated the danger of foreign-hosted tools that may mishandle local data. Similarly, panels in Singapore and the Philippines expressed concerns about the challenges of cross-border data transfers in the face of evolving regulations. To mitigate these risks, GRC teams across the region must ensure they have a clear understanding of where their data resides, how it is utilised, and the governing rights that apply to it.

 for boards. Senior executives must now prioritise AI governance, developing a comprehensive strategy that guides and controls AI use across their organisations.

Panellists emphasised that current laws already regulate AI use. For instance, in Australia, directors' duties under the Corporations Act, along with the Privacy Act and anti-discrimination and copyright laws, are applicable. Singapore's Personal Data Protection Act and Model AI Governance Framework promote responsible AI practices, while the Philippines' Data Privacy Act and AI advisories focus on data rights, transparency, and accountability.

Boards must help their companies keep up with 

 and prepare for new legal requirements. This involves not only understanding current laws but also anticipating future changes that may impact their AI governance strategies. By doing so, boards can help their organisations navigate the complex AI landscape effectively.

Establishing a robust AI governance framework

To build a strong AI governance framework, organisations must prioritise 

. Currently, a significant gap exists, with 64% of organisations not offering AI training and 45% having no plans to do so in the near future.

Effective AI governance is rooted in ethical principles. Panellists advocated grounding AI Governance in the principles of FATE: Fairness, Accountability, Transparency, and Explainability. To uphold these principles, leaders should establish cross-functional task forces, implement top-down strategies, and oversee AI use within 

and ESG frameworks. By taking these steps, organisations can ensure responsible AI use and mitigate associated risks.

Reimagining integrated assurance with AI: From risk mitigation to strategic insight

Leveraging real-time insights for enhanced governance

Organisations are now exploring AI-powered tools for data-driven audits, continuous risk monitoring, and effective compliance. By leveraging hands-on demos and peer case studies, they are adopting a more practical approach to GRC. The shift towards real-time assurance and predictive analytics enables organisations to identify potential issues before they escalate. As noted by the panellists, auditors must continue working towards integrated assurance.

The integration of AI brings numerous benefits, including richer insights, faster audits, and more effective detection of anomalies and fraud. By adopting AI, organisations can reduce human error by 30%, compliance risk by 50%, review time by 60%, financial losses by 40%, and incident response time by 80%.

AI enables 100% population testing, where it reviews every transaction, rather than relying on limited samples. Traditionally, auditors reviewed 20 to 30 samples; now, they can test every entry in a dataset, revealing issues at scale. Additionally, AI links structured and unstructured data to identify trends and risks, empowering auditors to shift from retrospective reviews to predictive assurance and strategic conversations with management.

Evolving role of GRC professionals in the AI era

The future of GRC professionals is deeply intertwined with audit teams’ transition from a policing function to a consultative role as integrated risk partners. Panellists projected that by 2035, 85% of audit roles will require AI proficiency, making training a strategic imperative.

APAC companies are upskilling auditors across the entire lifecycle, from planning and risk assessment to reporting, often starting small with low-risk pilots to build momentum. A cultural shift is necessary, where teams begin to ask, ‘Why not use AI for this audit?’ This mindset change is crucial for embracing AI’s potential. However, adoption must be balanced with ethics and governance considerations, including copyright risks associated with third-party content and the rapid obsolescence of AI tools. GRC professionals must choose tools that align with their data strategy and legal obligations.

Importantly, GRC professionals now wear two hats – they apply AI to improve their work, and they assess how management uses AI. They must champion AI, but at the same time, act as professional sceptics. This dual role requires regular documentation of how AI applies judgement and how human oversight validates it.

AI is a force multiplier if governed proactively. Organisations must adopt a Responsible AI approach that touches every part of the business, shaped by an understanding that AI strategy and data strategy are intertwined. Organisations need to know what data trains their model, what data monitors it, and how it interacts with legacy systems.

As panellists noted, AI governance is about being prepared, not perfect. Organisations that embed AI governance gain a competitive edge and avoid blind spots that can lead to legal or reputational damage.

See the difference responsible AI can make

streamlines board reporting, drive audit efficiency, and elevate governance.

Diligent Connections 2025: How AI is reshaping GRC practices in APAC

This article originally appeared in our August 28 edition of the Diligent Minute Newsletter. For more insights like these, delivered straight to your inbox, subscribe 

My colleague Josh Black, Vice President of Editorial at Diligent, doesn’t use words like “eventful” and “unconventional” lightly. So, when I saw them front and center in the editor’s forward of this year’s Proxy Season Review, which Diligent Market Intelligence prepares in association with Olshan Frome Wolosky and Campaign Management, I paid even more attention than usual.

“It is difficult to recall a more eventful or unconventional proxy season since the first year of the pandemic,” Black declared. 

Relentless market volatility is only part of it

. Activists have beena dopting new tactics and advancing stronger director candidates to achieve their desired objectives, especially in the U.S. “It feels very much like an inflection point,” Black added.

Proxy season 2025: Evolving shareholder engagement strategies

In this year’s review, his team examines this inflection point, connecting the dots between what we’ve seen in this year’s proxy season and what these trends mean for boards and advisors right now. Here are a few key takeaways, starting with shareholder engagement.

You’ve probably observed a noted decline in proactive communications by institutional investors lately. Regulatory developments, like revised guidance on Schedule 13D/G eligibility, are a big part of this.“ Norms have unmistakably evolved,” Campaign Management CEO and Founder Michael Fein pointed out in his analysis. “Institutional investors paused outreach, reassessed compliance exposure, and pulled back from dialogue just as several proxy campaigns were gathering momentum.”

Shareholders still care deeply about board structure, accountability, and transparency — critical contributors to strong corporate performance in uncertain times.

In the first half of the year, 33 governance-focused proposals passed with majority support. Board composition has been a common target, with director shuffles at Phillips 66 and Penn Entertainment far from isolated anomalies. We’ve also seen a significant increase in withhold campaigns for driving director changes and other demands.

2. Make real-time data and shareholder sentiment a board priority

Amid this perfect storm of new tactics, heightened scrutiny and radio silence from institutional investors, it’s harder than ever to anticipate vote dynamics and activist positioning.

Is a withhold campaign targeted pressure for governance enhancements, or a prelude to a full-blown proxy fight? Your company’s future depends on answering questions like these quickly and well. And this means moving beyond historical data, guesswork and ad hoc interpretation to real-time intelligence.

Now is the time to invest in systems and processes that deliver accurate, actionable data on investor sentiment, proxy trends, and governance benchmarks.

It’s time to look beyond business as usual for shareholder engagement as well. This means rethinking how your organization interacts with institutional investors. What new touchpoints can you leverage to fill in communication gaps? How can you proactively share your governance story — especially future-focused strategies and positive milestones — in a way that responds to current trends and sentiment?

Think about harnessing all of the data collected in the steps above, like 

 and proposal outcomes, to shape your narrative. “The 2025 proxy season made clear that activists will not sit on the sidelines waiting for more ideal economic conditions,” Andrew Freedman, Chair of Olshan Frome Wolosky’s Shareholder Activism Practice Group, warned in this year’s review. And here’s what he recommends: “Stay prepared to respond to well-crafted demands and sharp strategies, underscored by an unwavering focus on performance and accountability.”

Keep reading for more on the 2025 proxy season

Dive into our full analysis — AI, ESG, 2025’s wildest campaigns and much more — in the full report: The Proxy Season Review 2025.

Want regular access to original research in the field of GRC? Bookmark our 

 for the latest surveys, podcasts and reports.

2025 proxy recap: Pivotal shifts for the road ahead 

Boardroom Confidence Erodes In August Poll Amid Washington ‘Chaos’

Survey finds a growing number of public company directors forecast flat growth for the rest of the year, despite new tax cuts. The big opportunity? AI adoption.

After months of tariff-fueled ups and downs, America's public company board members appear to have found some emotional equilibrium about the state of the economy—but it's hardly optimistic.

The latest reading from our Director Confidence Index, a quarterly poll of public company board members in the U.S. conducted by Corporate Board Member and Diligent Institute, finds directors’ perception of the current business environment unchanged since Q2, with little expectation for improvement in the year to come.

Directors rate current conditions at 4.9 out of 10, a modest improvement from last quarter's 4.4 but still well below the 6.7 optimism they expressed at the end of last year.

Meanwhile, their 12-month forecast holds steady q/q at 4.8 out of 10, suggesting a potential plateau for business, amid the competing Washington forces of tariffs, potential Fed cuts and the OBBB.

“We expect higher inflation, rising unemployment and a possible recession, potentially leading to stagflation,” said one director polled, attributing these events to “ongoing tariffs and other policies of the current administration.”

Others point to nascent signs of increasing unemployment, overvalued stock markets and weakening consumer demand, all of which they attribute to DC decision-making rather than any underlying economic fragility. “Chaos at the federal level making investment decisions riskier,” explained one director, echoing several others who said tariffs and geopolitical uncertainty are impacting consumer behavior as well as corporate strategies.

At the same time, manyexpect tailwinds fromthe One Big Beautiful Bill, the influx of foreign investments and the settling of trade agreements, which they say help support business growth. As one director put it: “Stable tax rates, tariffs which are in place and understood, and significant corporate and foreign investment in new plants and services” are driving his optimism.

The likelihood that the Fed will cut rates at their upcoming meeting is also helping curb the negative impact of Washington-imposed headwinds. “I expect tariffs will be settled, interest rates will be lower, and the overall confidence of the consumer will improve,” one director said, explainingher 12-month forecastfor business of 6 out of 10.

Overall though, our August poll shows a deep erosion indirectors’ outlook, with many morepredicting economic conditions will deteriorate in the near term: 37 percent vs. 21 percent in Q2. 

Corporate forecasts for the months ahead remain about where they were last quarter:

65 percent expect revenues to increase over the next 12 months, unchanged from Q2.

56percent expect profits to increase during that same period, vs. 59 percent in Q2.

42 percent plan to increase capital expenditures in that period, vs. 41 percent in Q2.

Against this backdrop, directors say the biggest opportunities for their company can be found in AI adoption (64 percent),with several also finding opportunities in M&A and strategic partnerships (58 percent). 

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.

Diligent Institute informs, educates, and connects leaders to champion modern governance. We provide original, cutting-edge research on the most pressing issues in corporate governance; certifications and educational programs that equip leaders with the knowledge and credentials needed to guide their organizations through existential challenges; networks that convene directors and corporate executives to share best practices and insights; and awards and recognition programs that celebrate the accomplishments of those who champion modern governance. Learn more at 

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Diligent Connections 2025: How AI is reshaping GRC practices in APAC

2025 proxy recap: Pivotal shifts for the road ahead

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