Board expertise gaps and AI skills come into focus in PwC’s 2026 Annual Corporate Directors Survey

of executives expect more opportunities in the next year, and they're already taking action to manage risk and adapt strategy.

of companies have moved beyond the planning phase on key actions like cost reduction, budget adjustments, and supplier diversification.

of Health Industries executives cite cyber-attacks as a moderate or serious risk, the highest for those executives and the highest across all industries.

of executives say they're adopting a more long-term, US-focused business strategy.

As boards face rapidly changing capability needs, directors point to gaps in expertise, AI fluency, assessment processes, and strategy oversight

More than half (55%) of directors believe at least one colleague should be replaced, according to PwC's 2026 Annual Corporate Directors Survey. That figure is consistent with last year, but the reasons directors cite are shifting: among those who believe a colleague should be replaced, 39% point to insufficient expertise, up from 21% in 2025.

Yet when evaluating prospective directors, 81% say alignment with the board's culture and ways of working is very important, compared with just 27% who say the same about specialized expertise such as AI or cybersecurity. And among directors who believe at least one colleague should be replaced, only 36% say their boards are incorporating skill gaps into succession planning.

AI is testing boardroom fluency

AI is perhaps the clearest example of how quickly capability needs are changing. 71% of directors say their boards need to strengthen their AI skills to provide more effective oversight-more than twice the next-highest response. Directors also report significant gaps in the information needed to oversee AI strategy and execution, with 82% rating information linking AI outcomes, risks, and business performance as fair, poor, or not provided.

AI is also raising the stakes for cybersecurity. More than two-thirds (69%) identify cybersecurity, data privacy, or intellectual property risks as their top AI-related concern. Boards are responding, with 58% of directors saying their boards increased interactions with the CISO, 44% clarified escalation protocols for significant cyber incidents, and 42% increased cyber-related education for directors over the past year.

Strengthening board assessment and strategy oversight

Nearly three-quarters (73%) of directors say their boards' assessment processes could improve, while almost half (49%) say assessments are not sufficiently candid. Among directors who say their assessments are not sufficiently candid, 40% say using an independent third party would strengthen candor.

Directors also see opportunities to sharpen strategy oversight. More than four in five (81%) say their boards can challenge management on corporate strategy more effectively, and 82% identify opportunities for management to improve the materials that they provide to the board. The responses emphasize sharper insight over greater volume, including better synthesis of key issues, greater focus on strategic discussion, and more forward-looking analysis.

A more complex external environment

These demands come as boards navigate an increasingly complex external environment. Nearly three-quarters (73%) of directors are concerned that heightened geopolitical conflict will affect their company over the next three years, while more than half (51%) say the regulatory environment has affected their boards' role. Directors nevertheless continue to see value in the public company model. More than four in five (81%) believe the benefits of being public outweigh the demands.

"Boards have spent years adapting to an expanding governance agenda. Now, the challenge is making sure they have the expertise, processes, and judgment to govern effectively as that environment continues to change," said Ray Garcia, PwC US Governance Insights Center Leader. "Directors recognize where there are opportunities to strengthen their oversight. The focus now should be on building the capabilities and practices that help boards navigate what's next."

Looking ahead

The results of the 2026 survey show that directors recognize opportunities to strengthen how their boards operate-from building the right expertise and developing greater fluency in rapidly evolving areas like AI to strengthening assessments and strategy oversight. Strong governance increasingly depends on the expertise, processes, and judgment boards bring to an already broad oversight agenda.

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