Artificial intelligence governance remains in its infancy across listed companies despite growing investor pressure for greater oversight, with new research suggesting 2026 could become a pivotal year for corporate disclosure and accountability.
A report from ISS-Corporate found 24 per cent of S&P 500 companies disclosed artificial intelligence frameworks or policies in 2025, while 22 per cent reported board oversight of AI. Among Russell 3000 companies, both figures stood at just 6 per cent.
The findings come as shareholders increasingly seek evidence that boards are equipped to manage both the opportunities and risks associated with AI adoption.
According to ISS-Corporate, investor demand for transparency has accelerated alongside the rapid uptake of AI technologies.
Its annual governance survey found 58 per cent of investors believed companies that significantly use AI should already be applying global frameworks to evaluate AI-related risks. Nearly all investor respondents also supported public disclosure of board oversight of AI initiatives.
The report said a disconnect remains between investor expectations and corporate disclosure practices.
“In the ISS Research survey mentioned above, 84 per cent of non-investors responded that it was probably premature for most companies to disclose AI frameworks, compared with the 58 per cent of investors who thought it was timely,” the report noted.
“This disconnect implies that 2026 is likely to be a tipping point year in terms of the imperative for companies to acknowledge and disclose their AI preparedness versus the optics of silence on the topic.”
Sector-level analysis showed utilities and information technology companies were leading AI oversight disclosures, while financials and healthcare ranked among the lowest despite their exposure to significant AI-related risks.
Only about 5 per cent of companies in both sectors disclosed board oversight of AI.
Furthermore, ISS-Corporate found 69 per cent of S&P 500 companies and 87 per cent of Russell 3000 companies had no directors with clearly disclosed AI skills.
Just 24 per cent of S&P 500 companies had between one and three directors with AI expertise, while only 6 per cent reported four or more AI-skilled directors.
Although information technology companies led in board-level AI expertise, the report noted nearly 70 per cent still failed to disclose meaningful AI-related credentials among directors.
Disclosure of formal AI governance frameworks also remained relatively rare. While nearly one-quarter of S&P 500 companies reported policies or procedures covering AI development, deployment and monitoring, only 6 per cent of Russell 3000 companies made similar disclosures.
Information technology and utilities again ranked highest, while financials and healthcare sat among the weakest sectors.
ISS-Corporate argued that formal policies provide a stronger signal of governance maturity than board responsibility alone because they make oversight “actionable and tangible” for stakeholders.
The report concluded that companies have made progress in recognising the importance of AI governance but are still struggling to translate awareness into robust oversight structures.
“The gap between board expertise and implementation of AI policies suggests the market may currently be in an awareness-without-action phase as companies are recognizing the significance of AI literacy at the board level, while struggling to keep up with the rapid revolution and conversion of this into formal governance infrastructure,” the report said.
ISS-Corporate expects AI risk oversight and disclosure to continue expanding throughout 2026 as investors place greater emphasis on balancing the technology’s risks and rewards.
