Corporate governance trends for 2025 and beyond
Corporate governance was born in the 1970s as lawmakers and the Securities & Exchange Commission pushed to prevent economic unrest by holding companies and their directors accountable. While many corporate governance trends have come and gone since then, what remains is a desire among regulators and shareholders alike to see corporate boards operate transparently and ethically.
Today, governance is growing more complex due to AI, which creates both opportunities and risks for organizations. Our global regulatory roundup shows that artificial intelligence is driving far-reaching digital transformation at a time when cybersecurity threats continue escalating. Geopolitical risks and evolving regulatory frameworks have further challenged boards to modernize their governance infrastructure. Despite this rapid transformation, significant gaps remain: while governance technology adoption accelerates, many organizations still struggle with fragmented systems and manual processes that limit strategic agility.
At the Elevate Leadership Summit in September 2024, Ana Dutra, Global Veteran Board Director, two-time CEO and Fortune 250 Senior Executive, told Diligent Institute, “The winners will be the companies that recognize that risk and opportunities need to be standing discussion topics on the board agenda. Think about changing your committee structure to reflect this — and make sure that you aren’t throwing everything under the Audit Committee’s purview. Beware of the dangers of a purely check-the-box mindset when it comes to preparing for these risks and identifying emerging opportunities.”
What do boards need to know about how corporate governance will evolve in 2025 and beyond? Here, we will unpack:
- The emerging trends shaping the future of corporate governance
- Corporate governance trends at work today
- Key governance trends influencing global markets
- Professional governance technology infrastructure to address modern challenges
- Technology solutions to create a governance framework that scales with complexity
Corporate governance trends shaping 2026
The world has changed significantly in the past year. These trends reveal how internal and external forces will fundamentally reshape corporate operations and what boards need to know to stay ahead.
Trend 1: AI-powered governance platforms will separate leaders from laggards
Board technology has evolved far beyond simple board portals to become AI-enhanced governance platforms that change how directors prepare for meetings, assess risks, and make strategic decisions. This evolution is creating a competitive divide that will determine which organizations thrive in 2025's complex governance environment.
- The opportunity is massive, with rapid expansion underway: Agentic AI projects are expected to rise by 48% by the end of 2025, while 36% of organizations have already implemented generative AI, up from 20% last year, driving explosive market growth. Yet this transformation is creating a critical divide between early adopters and hesitant organizations. While pioneering companies are achieving 1.7 times return on investment from their AI implementations, some organizations still struggle with scaling AI beyond pilot projects.
- Early adopters are experiencing transformational efficiency gains: Organizations that have successfully integrated AI governance technologies report dramatic improvements in board preparation time and faster responses to internal stakeholder requests. These efficiency gains translate directly into more strategic board discussions and proactive risk management that impacts business performance.
- AI is democratizing sophisticated governance capabilities: Previously, advanced features like AI-powered document analysis, automated risk scanning, and intelligent compliance monitoring were available only to large enterprises. Today's leading governance platforms scale these enterprise-grade capabilities from startup boards to Fortune 500 requirements, enabling smaller companies to implement professional governance infrastructure without traditional resource constraints.
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Discover moreTrend 2: Corporate culture will reckon with financial fraud and abuse
Financial fraud can plague even the most outwardly successful organizations. In 2025, the challenge is building a corporate culture that roots out bad actors. This is easier said than done, given that corporate culture isn’t always effective at promoting transparency.
“There’s often an inclination to avoid bad news, with a hope that problems will be resolved before they escalate to the board level," says Pav Gill, CEO of Confide.
Boards should embrace this trend in corporate governance by taking a closer look at legal and regulatory compliance practices. A deep understanding of the organization’s compliance and cultural challenges enhances oversight and humanizes the organization. Collaborating with senior leaders is a key way to cultivate this familiarity.
“There should be a direct, consistent line of communication from the Chief Compliance Officer (CCO) or General Counsel (GC) to the board,” says Gill.
While boards traditionally held senior leaders at arm’s length, integrating leadership with board directors can advance the processes, talents, and best practices that compliance depends on. This ethical culture also has tangible benefits for the bottom line. LRN’s research shows that organizations with strong ethics outperform others by up to 40% across key metrics.
Trend 3: Ethics will be a key focus
New technology may introduce new ethical issues. AI, for example, isn’t readily transparent and has biases, which can complicate data-gathering and decision-making for boards striving to offer their shareholders greater visibility.
At a time when shareholders are already concerned with boardroom practices, new technology will only intensify the ethical issues boards face. Quickly evolving global regulations and AI technologies have challenged companies to ramp up.
"Implementing a robust ethical framework from the beginning of your AI strategy will keep ethical standards at the forefront — no matter what regulatory changes are up ahead."— Sophia Velastegui, AI expert and board member, in Diligent's 2025 risk & opportunity outlook.
Ethics aren’t just about regulations either. AI brings numerous well-documented risks, including unintended bias and invasions of privacy. Harvard Business Review details several questions corporate AI strategies must answer, including:
- How might the AI we design, procure, and deploy present ethical risks that cannot be avoided?
- How do we systematically and comprehensively identify and mitigate them?
- If we ignore them, how much time and labor would it take us to respond to a regulatory investigation?
- How large a fine might we pay if found guilty, let alone negligent, of violating regulations or laws?
- How much would we need to spend to rebuild consumer and public trust if money could solve the problem?
Trend 4: Cybercrime is on the rise, emphasizing the need for strong controls
Cybercrime is the biggest risk most organizations will face in 2025. The ever-increasing value of data largely fuels this threat.
“Digital assets drive valuation, and the most valuable businesses are data-centric. This means the bread and butter of your business would then be impacted in a cyber incident,” says Anastassia Lauterbach, CEO and founder of AI Edutainment.
Generative AI has also increased organizations’ attack surface by an estimated 67%. The cost of breaches is projected to rise from $9.22 trillion in 2024 to $13.82 trillion by 2028. Unprepared organizations could face potentially irreparable damage at the hands of cybercriminals.
Over the next year, boards must remain vigilant. Infrastructure and data upgrades of all sizes must be considered high-risk. Implement software and configuration changes carefully and strategically to avoid widespread disruption or damaging breaches.
Take CrowdStrike, for example. This U.S. cybersecurity company deployed a faulty CrowdStrike Falcon software update in July 2024 that triggered an outage affecting roughly 8.5 million computers using Microsoft systems worldwide. The insurance costs are still mounting but are expected to reach $300 million to $1 billion — costs that could have been twice as high, if the outage had been malicious. More robust change management and a strategic approach could have mitigated this far-reaching crisis.
Trend 5: Real-time governance dashboards enable strategic agility
The quarterly board meeting model is being disrupted by real-time governance capabilities that enable continuous oversight and more agile decision-making.
"The quarterly board meeting will probably be a lot shorter because the board will have met several times in between."— Dottie Schindlinger, Executive Director, Diligent Institute
Governance platforms like Diligent provide unified dashboards that consolidate risk data, performance metrics, and compliance status into real-time visualization tools. These capabilities enable boards to identify emerging issues quickly, track strategic initiatives, and respond to market changes with unprecedented speed and accuracy.
"Boards are going to have to be a bit more fluid and flexible. Dashboards are really the only way forward." — Dottie Schindlinger, Executive Director of the Diligent Institute.
Trend 6: Corporations need to nurture and attract young talent
The workplace will transform over the coming years. 58% of the global workforce will be Millennials or younger by 2030, many of whom were hired during the pandemic and have primarily worked remotely. Job hopping — switching jobs frequently — has also emerged as a break from traditional corporate culture.
“They’ve never been in an office. They don’t know what corporate culture looked like pre-pandemic because they’re not a part of that history,” says Schindlinger.
As a result, talent, risk and culture have dominated the board agenda. Businesses are grappling with significant demographic shifts as baby boomers near retirement and new generations take their place. Additionally, board and C-suite succession may become challenging as experienced board directors near retirement without qualified younger talent to replace them.
Companies should start nurturing young talent by considering which tools and structures can facilitate innovation and mentoring; many organizations are renaming committees to highlight “talent” and “culture.” This includes thinking about job hopping differently.
“Rather than saying they only stay for two years, you say, hey, this person stayed for two full years,” says Schindlinger.
Boards must also think beyond tradition and consider whether hybrid work models that appeal to young talent can bolster the productivity their organizations need.
“Boards should be asking: What do we need to do differently? What are the tools we have in place to keep everyone connected? How do we keep the board connected?” says Schlinger.
Looking ahead, tools like Diligent Messenger can keep the board connected and engaged in strategic conversations about talent. Using these tools advances conversations about nurturing young talent rather than waiting for board meetings.
Trend 7: Board effectiveness measurement drives competitive advantage
Despite growing emphasis on board effectiveness, significant gaps remain in evaluation practices. Leading organizations are achieving measurable improvements through comprehensive evaluation frameworks, while many boards struggle with assessment processes that fail to drive meaningful change.
The root challenge lies in execution, not intention. While 88% of directors trust their board to effectively assess its own performance, and 74% say their board leader effectively deals with underperforming directors, there's a critical disconnect. Among directors who view their assessment process as ineffective, 44% attribute it to members being insufficiently invested in the process itself.
To take this corporate governance trend seriously, boards must commit to thorough, confidential evaluations that foster honest dialogue and translate insights into tangible actions. This requires full participation from every member and a commitment to implement changes based on the evaluation findings.
Current trends in corporate governance
Trend 1: Political dynamics reshape ESG governance approaches
Many view the UN's 2004 Who Cares Wins report as the document that made environmental, social and governance (ESG) mainstream. While ESG principles remain important, the political scene has significantly complicated implementation and strategic positioning.
Politicians on both sides of the aisle have different opinions on ESG and, as a result, different ideas about what constitutes good governance. The 2024 U.S. presidential election only underscores the worldwide shift to the right, opening the door to changes in ESG policy and governance more broadly.
“A political party comes in and sweeps away what was existing, a trend seen over the past decade, especially in the U.S. This makes the job of corporate boards increasingly difficult," says Schindlinger.
Now, modern boards will likely have to chart their paths forward individually, toeing the line between complying with the SEC, other regulatory bodies and the Trump administration while meeting the expectations of their unique shareholders and customers.
Political winds in the U.S. are shifting which might upend existing focus on sustainability in the States. However, most other major economies in the world are increasing focus on climate change.
Trend 2: Boards are facing increased scrutiny from all sides
In the post-universal proxy era, shareholders continue to hold boards accountable — often in surprising ways. Governance proposals increased for the first time in recent years during the 2024 proxy season, as did compensation proposals.
Support for say-on-pay proposals also remained high, underscoring shareholders’ desire to have their voices heard. The universal proxy process has also opened doors for unions following recent high-profile strikes, with many unions submitting more proposals in 2024 than they did in years prior.
Proxy season also echoed the political unrest many organizations have faced in the past year. Anti-ESG proposals soared, even though support for them has not. Companies submitted no-action requests in connection with 43% of proposals from anti-ESG proponents, compared to 25% for others.
Boards can prepare for these shareholder-centric trends in corporate governance by continuing to align closely with their shareholders’ expectations. Consider why shareholders invest in your company and their goals beyond profitability, then offer transparency around board decision-making in those areas. A company-specific strategy for engaging with shareholders around key issues can avoid unrest.
Trend 3: Regulatory compliance costs create strategic pressures
Regulatory compliance is a growing challenge for mid-market companies facing disproportionate cost burdens. American businesses spend approximately $300 billion annually on regulatory compliance, but these costs are distributed unevenly across company sizes.
For enterprise organizations, the challenge isn't just cost — it's the exponential complexity of managing compliance across multiple jurisdictions, business units, and regulatory frameworks simultaneously. Global enterprises face overlapping requirements from dozens of agencies while navigating different regulatory approaches across international markets, creating administrative overhead that can overwhelm even well-resourced compliance teams.
Trend 4: Stakeholders want greater CEO oversight
Consumer skepticism about CEO compensation isn’t new. Many consumers and even many shareholders believe CEOs are overcompensated. More transparent compensation packages can counter this scrutiny, but CEOs will likely remain in the spotlight.
Over the past year, boards and executives have taken that attention seriously. In PwC’s Annual Corporate Directors Survey, 71% said their boards took action related to shareholder activism in 2024. This action has largely been driven by boards’ desire to engage with shareholders proactively. In fact, 26% of directors say they also revised compensation structures to keep with shareholder expectations.
Now, shareholders will want to see CEOs performing, specifically making what shareholders see as the “right” decision to maximize returns. At the same time, rising inflation and supply chain issues have renewed the call for corporations and their CEOs to act ethically and responsibly.
Global trends in corporate governance
Trend 1: AI regulations worldwide are evolving with significant jurisdictional differences
Global AI regulations are fragmenting quickly, with different regions pursuing distinct approaches that create complex compliance challenges for multinational organizations. The EU AI Act represents the most comprehensive framework, imposing penalties up to €35 million or 7% of global turnover, while the U.S. approach varies significantly by administration and focuses more on voluntary standards and sector-specific guidance.
This regulatory fragmentation creates challenges for enterprise organizations operating across multiple jurisdictions. Companies must navigate varying requirements for AI governance, risk assessment, and transparency while maintaining operational efficiency.
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Discover moreTrend 2: Geopolitical tensions remain a challenge
The ongoing Russia-Ukraine conflict continues to impact global supply chains and governance requirements, while the rise of right-wing parties in Europe shifts regulatory priorities away from sustainability initiatives. These geopolitical dynamics create complex risk assessment challenges that require continuous monitoring and strategic adaptation.
For organizations with global operations, supply chain governance has become a critical board-level concern. In fact, CEOs now identify supply chain issues as a top business risk, reflecting increasing complexity and vulnerability of global networks.
Trend 3: Regional economic pressures create governance adaptation requirements
Different regions face distinct economic pressures that influence governance practices. Health crises continue to challenge Africa's economic growth, while emigration and political instability shape Latin America's business landscape. China's economic posture influences operations throughout the Indo-Pacific region, creating strategic complexities for multinational organizations.
These regional variations require sophisticated risk assessment capabilities and flexible governance frameworks that can adapt to local conditions.
Trend 4: Trade policy uncertainties demand adaptive governance frameworks
The Trump administration's trade policies are creating immediate governance challenges for multinational corporations. While tariffs on China have been temporarily paused, the administration has implemented sweeping tariff increases on other trading partners, with threats of additional measures that could reshape global supply chains.
These policy shifts require governance frameworks capable of scenario planning and rapid strategic adaptation. The interconnected nature of global commerce means that U.S. trade policy changes cascade through supply chains and affect organizations worldwide, forcing boards to prepare for multiple potential scenarios simultaneously.
Historical corporate governance trends
| Year | Trend 1 | Trend 2 | Trend 3 |
|---|---|---|---|
| 2025 | AI governance platforms separate leaders from laggards | Real-time dashboards enable strategic board agility | Cybersecurity governance becomes board-level imperative |
| 2024 | AI regulations worldwide shape the adoption of this technology | The global rise of the far-right shifts political and economic priorities away from ESG and toward traditional metrics | Ongoing conflicts between Russia-Ukraine and Israel-Palestine divide countries and stress the supply chain |
| 2023 | The universal proxy challenges boards to align with shareholders | AI begins to transform the business landscape | Rolling layoffs and hiring freezes impact availability of talent |
| 2022 | Increased standards for sustainability reporting | Rising gender diversity on corporate boards | Greater emphasis on board effectiveness |
| 2021 | Focus on environmental and social issues | Importance of corporate social impact | Board oversight of company culture |
| 2020 | Expansion of remote working | Ethnic and racial diversity on boards | Scrutiny around executive compensation |
| 2019 | Push for greater board quality and performance | Using governance as a tool to add value for investors | ESG took center stage for boards and investors |
| 2018 | Expectation for investors to influence corporate strategy | Increasing engagement with activist investors | Continued focus on board composition |
| 2017 | Push for more uniform governance practices | Holding boards accountable to long-term performance | Expecting the board to oversee a wider range of business activities |
| 2016 | Investor skepticism about individual board directors | Increased governance regulations to boost transparency | Surging shareholder engagement around ESG issues |
Professional governance technology infrastructure for modern organizations
These trends reveal a fundamental truth: organizations succeeding in 2025's governance environment have implemented professional governance technology infrastructure that transforms administrative burdens into competitive advantages.
Traditional governance approaches are insufficient for managing the velocity and complexity of contemporary business environments, where regulatory requirements continue expanding and stakeholder expectations increase.
The most effective governance platforms address three critical areas where AI delivers measurable impact: intelligent document management that streamlines board preparation, advanced risk detection that identifies compliance gaps before they become problems, and strategic intelligence that enhances meeting effectiveness.
Here's how leading organizations are implementing these capabilities:
1. Intelligent document management and board preparation
Leading governance platforms like Diligent use AI-powered document synthesis and meeting preparation to address one of the most time-intensive aspects of board oversight. Advanced systems can automatically analyze previous board materials, identify recurring themes, and suggest content organization based on meeting agendas and company-specific practices.
This capability extends beyond simple template application to incorporate contextual understanding of governance requirements and industry-specific documentation standards.
Diligent’s Smart Board Book Builder technology represents a breakthrough in this area. It eliminates the manual creation of board books from scratch by intelligently gathering, organizing, and synthesizing company materials, historical documents, and action items.
2. Advanced risk detection and compliance monitoring
Comprehensive risk management requires continuous monitoring capabilities that exceed human capacity for manual oversight. Best-in-class governance platforms provide AI-powered risk scanning that can identify potential legal issues, compliance gaps, and sensitive content within board materials before distribution.
Diligent’s Smart Risk Scanner capabilities extend beyond simple content analysis to provide contextual risk assessments based on industry regulations, corporate governance standards, and legal requirements.
The technology can suggest specific remediation actions and alternative language that maintains the intended meaning while reducing legal exposure.
3. Strategic intelligence and meeting enhancement
Governance requires directors to approach meetings with a good understanding of complex business situations and their implications. Advanced governance platforms provide AI-driven meeting preparation that analyzes board materials, historical patterns, and industry trends to generate personalized insights and strategic questions for individual directors.
Diligent’s SmartPrep technology considers each director's expertise areas, committee assignments, and previous engagement patterns to create customized preparation content that maximizes board participation value.
The system can correlate information across multiple documents to surface connections and implications that might not be apparent through manual review, enabling directors to approach meetings with a deeper strategic understanding.
Future-proof your corporate governance for 2026 and beyond
Corporate governance changes quickly, but the organizations that thrive are those that build adaptive frameworks capable of evolving. The most successful organizations in 2025 will be those that recognize governance isn’t a compliance burden but a strategic capability that enables competitive advantage.
As governance complexity accelerates across AI regulations, cybersecurity threats, and global compliance requirements, forward-thinking organizations are turning to AI-powered solutions to transform their boardroom effectiveness.
Download our guide on putting AI to work for better board management to discover how AI is reshaping corporate governance and empowering boards to automate board book creation, strengthen compliance oversight, and enhance meeting preparation.
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