Industry executives and experts share their predictions for 2026. Read them in this 18th annual VMblog.com series exclusive.
By Nithya Das, Chief Legal Officer, Diligent
AI’s rapid evolution and widespread corporate adoption are making 2026 the year that demands agility from organizations, legal leaders, and boards. Organizations must navigate simultaneously accelerating innovation and tightening regulations; a dual mandate that leaves no room for reactive strategies. The year ahead will mark a critical inflection point where companies must redefine how they govern, operationalize, and strategically leverage AI.
AI Governance Tightens: Ushering in a New Compliance Era
In 2026, we anticipate that the pace of AI regulation will remain unpredictable and increasingly stringent. Organizations that thrive will be those that treat AI governance as a living framework rather than a one-size-fits-all policy. As new laws, like California’s SB 53, set a precedent for nationwide regulatory trends, organizations will face mounting pressure to prove their AI systems are compliant, transparent, and ethical. 2026 will mark a turning point, with boards and executive teams institutionalizing AI governance as a core competency by embedding continuous learning, proactive oversight and agile risk management into their operations. The most successful organizations will be those that strike the right balance between enabling innovation and maintaining trust through responsible, always-evolving governance.
The Rise of the AI-Enabled General Counsel
As organizations adapt to this escalating regulatory pressure, the role of internal leaders, particularly those on legal teams, will become even more critical to operations. General Counsels (GCs) who master AI’s language and capabilities will earn coveted seats at the executive table, transforming their legal departments from what were once perceived as cost centers to strategic powerhouses. Forward-thinking GCs that leverage data-driven legal operations and deliver real-time risk insights, compliance benchmarking, and proactive recommendations will become indispensable to the CEO and board of directors. As AI amplifies their ability to predict, prevent, and manage enterprise risk, many GCs will expand into broader risk management roles, positioning legal as the nerve center of organizational resilience. Those who embrace AI to build hyper-efficient legal departments will unlock unprecedented growth opportunities and career advancement. Meanwhile, GCs who resist technological transformation risk diminishing their effectiveness by failing to keep pace in an increasingly AI-driven business landscape.
Boardroom Accountability Redefined in the Age of AI
This expanding influence of the legal function mirrors a broader shift and trend happening at the governance level, where boards must also continue to evolve to meet the demands of an AI-driven era. The fiduciary landscape is rapidly shifting as AI transforms corporate governance expectations. Directors will be expected to be fully informed about artificial intelligence, with baseline AI fluency now a fundamental requirement of the duty of care. Boards must proactively assess competitive threats from AI adoption, recognizing that inaction itself constitutes strategic risk. This evolution demands the implementation of robust reporting systems, information controls, and governance frameworks specifically designed for AI oversight. Beyond traditional risk management, directors now bear responsibility for ensuring their organizations deploy trustworthy AI systems that meet stringent standards for validity, safety, security, accountability, transparency and alignment with corporate values.
Taken together, these trends point to a future where AI readiness becomes inseparable from corporate readiness. Governance, legal leadership, and fiduciary oversight will continue to be reshaped by the accelerating expectations placed on organizations to understand, operate, and strategically deploy AI. In 2026 and beyond, the organizations that win will be those that treat AI not merely as a technology to autonomize tasks, but as a governance imperative and a catalyst for an enterprise-wide transformation.
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ABOUT THE AUTHOR
Nithya B. Das is the general manager, governance business unit, and chief legal officer at Diligent Corp., where she leads the company’s global legal team and oversees the Diligent Institute, a modern governance think tank. Her expertise spans enterprise SaaS, corporate development, business strategy, HR and operations, driving impactful results through rigorous execution.
