Bridging the AI Governance Gap: 95% of Firms Lack Implementation of Effective Frameworks
Ryan Daws serves as a senior editor at TechForge Media, bringing over ten years of experience in developing engaging narratives and simplifying complex subjects. His work, including articles and interviews with prominent industry figures, has positioned him as a significant influencer, recognized by organizations such as Onalytica. His leadership has led to accolades from analyst firms like Forrester for outstanding publication quality. You can follow him on X (@gadget_ry) or Mastodon (@gadgetry@techhub.social).
Effective governance is crucial for reducing AI-related risks and ensuring systems are managed responsibly. However, many organizations have yet to establish a comprehensive governance framework.
A report commissioned by Prove AI and executed by Zogby Analytics surveyed over 600 executives, including CEOs, CIOs, and CTOs from major companies across the US, UK, and Germany. The results indicated that 96% of firms are currently employing AI to bolster business functions, with an identical percentage planning to increase their AI investments in the upcoming year.
The leading reasons for investing in AI include enhancing productivity (82%), boosting operational efficiency (73%), improving decision-making (65%), and realizing cost savings (60%). The most frequently reported applications of AI were in customer service and support, predictive analytics, as well as marketing and advertisement optimization.
In light of the increasing investments in artificial intelligence, business leaders remain highly conscious of the additional risks that AI introduces to their organizations. Concerns regarding data integrity and security have emerged as the primary hurdles to adopting new AI solutions.
Additionally, executives have noted several performance challenges associated with AI, including:
While a notable 95% of respondents expressed confidence in their organization’s current AI risk management strategies, the findings highlighted a considerable shortfall in the adoption of AI governance measures.
Merely 5% of executives reported that their organization had enacted any form of AI governance framework. Nevertheless, 82% indicated that establishing AI governance solutions is a somewhat or extremely urgent priority, with 85% intending to apply these solutions by the summer of 2025.
The report revealed that a significant 82% of participants advocate for an AI governance executive order to enhance oversight. Moreover, 65% voiced concerns regarding intellectual property infringement and the security of data.
Mrinal Manohar, the CEO of Prove AI, stated: “Executives are making their position clear: the long-term success of AI, including delivering a solid return on the substantial investments organizations are currently making, depends on their ability to construct and refine thorough AI governance strategies.
“The influx of AI-centric legislation emerging globally is amplifying the urgency; for the present wave of innovation to progress in a responsible manner, it is crucial to introduce clearer boundaries for managing and monitoring the data that informs AI systems.”
With global regulations such as the EU AI Act on the horizon, the report highlights the necessity of de-risking AI and acknowledges the work that remains. Establishing and enhancing focused AI governance strategies has become a key priority for companies eager to leverage the benefits of AI while reducing related risks.
The insights presented in this report act as a crucial reminder for organizations to focus on AI governance as they advance their investments and implementation of AI technologies. Responsible deployment alongside strong governance frameworks is essential to harness the complete capacity of AI while preserving trust and ensuring compliance.
(Photo by Rob Thompson)
Further reading: Scoring AI models: Endor Labs unveils evaluation tool
Interested in exploring more about AI and big data from industry experts? Discover AI & Big Data Expo happening in Amsterdam, California, and London. This extensive event is held alongside other prominent events such as the Intelligent Automation Conference, BlockX, Digital Transformation Week, and the Cyber Security & Cloud Expo.
Discover additional upcoming enterprise technology events and webinars organized by TechForge here.
Tags: ai, artificial intelligence, data, enterprise, ethics, framework, governance, law, legal, machine learning, report, research, security, study
You need to be logged in to leave a comment.
Discover the pinnacle of WordPress auto blogging technology with AutomationTools.AI. Harnessing the power of cutting-edge AI algorithms, AutomationTools.AI emerges as the foremost solution for effortlessly curating content from RSS feeds directly to your WordPress platform. Say goodbye to manual content curation and hello to seamless automation, as this innovative tool streamlines the process, saving you time and effort. Stay ahead of the curve in content management and elevate your WordPress website with AutomationTools.AI—the ultimate choice for efficient, dynamic, and hassle-free auto blogging. Learn More
