More than a third of Bermuda directors believe at least one fellow board member should be replaced, according to PwC's 2026 Corporate Governance Survey.

The survey also found boards are grappling with concerns about artificial intelligence.

The findings were published in PwC Bermuda's edition of the survey, which polled directors from across the region and included Bermuda for the first time.

The report found that 38 per cent of Bermuda directors believe at least one member of their board should be replaced. PwC said concerns centred on limited contributions, skills or expertise gaps as well as the sheer length of their tenure and how it might impact performance.

The survey suggested many boards are wrestling with how to balance traditional governance with advancing technology.

Marisa Savage, a partner at PwC Bermuda, said directors described a governance environment that is increasingly complex.

“The data suggests directors know change is needed to reflect the skills today’s boardroom demands,” Ms Savage said. “Rebalancing board composition to include digital and AI fluency is a governance imperative.

“Bermuda directors recognise that AI is reshaping their businesses — and the governance infrastructure needs to keep pace, including AI education, skills development, and implementation of formalised frameworks to oversee AI risks and opportunities.”

AI governance was one of the top concerns among Bermuda directors, tied with cybersecurity as the most-cited AI-related risk. Twenty-four per cent of respondents identified each as their organisation's primary concern.

Despite that focus, many directors questioned whether boards and management teams have the expertise to oversee the technology.

Almost two-thirds of respondents said their boards receive enough information about AI and generative AI, but only 41 per cent strongly agreed that their board has the skills needed to oversee AI strategy.

Confidence was even lower when it comes to management teams. Just 29 per cent strongly agreed that management has the skills needed to execute their organisation's AI strategy, while more than half expressed limited or no confidence.

The survey pointed to a disconnect between AI concerns and board recruitment. While AI was identified as a major governance issue, only 7 per cent of directors said AI expertise would be the most important attribute when recruiting new board members.

Instead, 59 per cent said their boards prioritise industry expertise, while gender diversity ranked as the top consideration for only 3 per cent of respondents.

Geopolitical risk is also rising higher on boardroom agendas, with 86 per cent of respondents saying it should be factored into corporate strategy and 80 per cent expressing concern about its impact.

PwC said the findings point to four priorities for boards: strengthening AI governance, closing board-level capability gaps, re-examining board composition and refreshment and improving board assessment processes.