Key takeaways:
- Boards recognize growing capability gaps, but recruitment priorities still favor cultural fit. Among directors who believe a colleague should be replaced, 39% cite insufficient expertise, up from 21% last year. Yet just 27% rate specialized expertise as very important when evaluating new directors, compared with 81% for alignment with the board’s culture and ways of working. The gap is especially relevant as boards face rapidly changing capability needs, including AI.
- Core board processes are not consistently delivering the candor and information directors need. Nearly three-quarters (73%) say board assessments could be improved, almost half (49%) say they are not sufficiently candid, and 82% see opportunities to improve board materials. The findings point to a need for more honest evaluation, sharper information, and stronger follow-through.
- Directors see substantial room to strengthen strategy oversight. More than four in five (81%) say their boards can challenge management more effectively on strategy. Directors point to clearer metrics, alternative strategic options and trade-offs, scenario analysis, and peer benchmarking as ways to deepen that challenge and build greater confidence in strategic decisions.
As oversight demands expand, boards face a basic question: do they have the capabilities their future responsibilities require? Consistent with last year:
- more than half of directors (55%) still think someone on their board should be replaced.
- Among those directors, 39% cite insufficient expertise as the primary reason, up from 21% in 2025.
- Yet when evaluating prospective board members, directors place much greater weight on cultural alignment: 81% say it is very important, compared with just 27% who say the same about specialized expertise such as AI or cybersecurity.
AI is perhaps the clearest example of how quickly capability needs are changing. More than two-thirds of directors (71%) identify AI as the leading skill their boards need to strengthen to provide more effective oversight, more than twice the next highest response.
Cybersecurity is a longstanding board oversight challenge, and AI is adding new dimensions to the risk while raising the stakes for preparedness. More than two-thirds of directors (69%) identify cybersecurity and data privacy as their leading AI-related concern.
Board effectiveness also depends on having a candid way to evaluate individual contributions, boardroom dynamics, and whether director capabilities remain aligned with the company’s needs. Yet nearly three-quarters (73%) of directors say their boards’ assessment processes could improve, and almost half (49%) say assessments are not sufficiently candid.
Read the full report here: pwc-2026-annual-corporate-directors-survey.pdf
