Midyear Checkpoint: What Boards Have Learned About Risk, AI and Leadership in 2026
The first half of 2026 has largely confirmed one of the key expectations expressed by business leaders at the start of the year: volatility is becoming the norm. According to WTW’s midyear assessment, geopolitical tensions, supply chain disruptions, cyberattacks, trade disputes, climate events and regulatory changes continue to shape strategic decision-making across industries. Rather than dealing with isolated threats, organisations increasingly face multiple risks that interact and reinforce one another. As a result, boards are investing more heavily in scenario planning and crisis preparedness to improve their ability to respond quickly when disruption occurs.
The findings of the Global Directors’ and Officers’ Survey underline this development. Geopolitical risk has entered the global top seven board-level concerns for the first time, reflecting the growing impact of political and economic instability on corporate strategy. Supply chain disruption remains a significant concern across several regions and sectors, particularly industrials, transportation, healthcare and retail.
At the same time, established risks continue to dominate board agendas. Health and safety remains the number one concern among directors and officers globally, while data loss and cyberattacks retain the second and third positions. These findings demonstrate that even as new threats emerge, organisations cannot afford to relax their focus on operational resilience and cybersecurity.
Artificial intelligence has been another defining theme of the year so far. According to WTW, the AI “arms race” predicted for 2026 is unfolding largely as expected. Organisations continue to accelerate adoption, while boards are refining their expectations based on practical experience rather than initial hype. AI-related risk increased by five percentage points in the Directors’ and Officers’ Survey and now ranks among the top five risks in the United States.
However, the survey also highlights a significant governance challenge. While concerns about AI-generated errors, misinformation, fraud, weak governance and strategic implementation are increasing, relatively few respondents believe boards currently possess strong oversight capabilities in this area. In other words, AI-related risks are rising faster than governance maturity.
Interestingly, the conversation around AI is beginning to shift. During the first half of 2026, many organisations moved beyond the simplistic debate of humans versus machines. Instead, they increasingly recognise that competitive advantage will come from combining technological capability with human judgement. WTW highlights research suggesting that AI may reshape between 50% and 55% of jobs over the next few years while creating far less displacement than initially feared. Consequently, skills such as critical thinking, contextual judgement, trust-building and decision-making are becoming increasingly valuable.
People risk has also remained high on the executive agenda. Labour markets have proven more volatile than expected, while inflation has remained stubbornly elevated in several major economies. By May 2026, inflation stood at 4.2% in the United States, 3.2% in both Canada and the Eurozone, and 2.8% in the United Kingdom. Many organisations have responded by slowing hiring and prioritising earnings protection while continuing to fund significant investments in AI and digital transformation.
Viewed collectively, the first half of 2026 offers an important lesson for insurers, actuaries and business leaders alike. The defining challenge is no longer managing individual risks in isolation. Geopolitics, cyber exposure, workforce dynamics, AI governance and operational resilience have become deeply interconnected. Boards that understand these connections, strengthen organisational agility and balance innovation with disciplined governance will be best placed to navigate the remainder of the year and beyond.