2026 director guide to AI, whistleblowing & compliance

In 2026, the focus is on regulatory overreach, AI in the boardroom, a new ASIC report on whistleblowing and the US pushing back against international proxy advisers, writes Louise Petschler.

Directors begin 2026 with accountability rising faster than certainty and a low community tolerance for missteps.

Regulators, markets and stakeholders are increasingly explicit about what they expect from boards on the governance of culture, capability and organisational resilience. At the same time, boards are navigating a “regulatory accumulation” workload problem that has become a governance issue in its own right. The AICD’s recent analysis with Mandala Partners of the accumulation of federal regulation reflects what directors have known for years — compliance focus and complexity are rising, with consequences for investment, productivity and growth.

Directors are navigating growing regulatory complexity while new and emerging issues demand more board focus, with AI, cyber risks, culture, shifting geo-economic trends and climate reporting among them.

Last year was productive for the AICD, as we sought to support our members in their rewarding and challenging governance roles, with a step up in advocacy on national issues and targeted support for directors on emerging concerns.

On the policy front, the AICD successfully brought director perspectives to the table on major reform issues, including APRA’s governance proposals, approaches to strengthen public markets, cyber laws, WHS reforms and Australia’s financial reporting architecture.

We also released guidance on areas where board focus is needed, including data governance, governing psychosocial risks, effective board minutes and transition planning, and issued new research to support public debate. In coming months, we plan releases including those on the governance of culture and NFP board remuneration.

This year promises to be busy, with the AICD focused on better policymaking processes, balanced digital regulatory settings, fit-for-purpose reporting regimes — and bringing focus to director-specific regulations. As a priority, we will work with like-minded peak bodies to ensure momentum on the productivity debate is not lost and that regulatory settings support — rather than hold back — growth and innovation.

AI in Australian boardrooms

In December, we issued an exciting new report taking a first look at how AI is shaping governance practice in the boardroom — from director preparation to board debate. AI use by directors and boards: Early insights aims to be a discussion starter to help directors and boards consider the benefits and responsible use of AI in the boardroom.

Drawing on interviews with directors and experts, the resource explores current board use cases and case studies, potential impacts on the roles of the director, chair and company secretary, and suggests questions to consider as AI use becomes more common in board practice. 

ASIC and whistleblowing: Practical insights

A new Australian Securities and Investments Commission report on whistleblowing provides boards with useful benchmarks to consider. From a survey of 134 companies, the report examines how processes operate in practice and where they fall short. Over 20 per cent of organisations surveyed had received no disclosures and ASIC has highlighted areas for systemic improvement.

Directors can draw on the report in dialogue with management, including:

• Awareness: Does the organisation report periodically on staff awareness of whistleblowing channels and confidence in confidentially, tracked over time?
• Responsiveness: What are the trends in the number and type of disclosures, average time to triage and escalation path for disclosures?
• Board visibility: Does the board receive regular, de-identified reporting on themes, retaliation allegations and potential systemic issue flags?

Access the Insights from the ASIC Whistleblower Questionnaire (REP 827) report.

Proxy advice in US government sights

In late 2025, President Trump issued a new executive order targeting large proxy advice firms, directing the SEC and other regulators to increase regulatory scrutiny. White House concerns are that large global proxy advice firms have an “outsized influence” on investor voting and promote “politically motivated agendas”, reflecting the Trump administration’s broader concerns about ESG and diversity and inclusion issues.

The new executive order — Protecting American investors from foreign-owned and politically-motivated proxy advisors — specifically targets global firms International Shareholder Services and Glass Lewis. Both firms have been adjusting their benchmarks and US market approaches in light of prior US government measures, and have committed to working constructively with federal regulators named in the order.

Supporters of the order, including some business leaders, argue increasing disclosure and regulation will rebalance governance influence and clarify fiduciary responsibility, particularly on more politicised proxy issues. Critics, including some institutional investors, argue the order may weaken shareholder influence on companies and risks substituting political judgement for market-led engagement.

This article first appeared as 'Policy & Leadership' in the February/March 2026 Issue of Company Director Magazine.