Dive Brief:
- Although most companies think their AI governance is up to par, the maturity of their programs is lacking, according to a report by compliance services firm Schellman. Nearly three-quarters of respondents said they could pass an AI compliance audit, but just 27% described their programs as fully mature, the Wednesday report, which surveyed 525 U.S.-based professionals involved in governance at their organizations, found.
- Funding AI governance can give organizations a false sense of confidence, the report found — 90% of respondents said their organization has allocated funding to AI governance, but many struggle with policies, oversight and accountability as AI adoption accelerates.
- Most organizations have the foundational steps in place, Danny Manimbo, managing principal and ISO and AI practice leader at Schellman said in a statement. “The challenge is turning those individual activities into a mature, operationalized program that can withstand regulatory scrutiny and keep pace with rapidly evolving AI systems,” he said.
Dive Insight:
Companies are struggling to keep pace with their AI governance as the technology is further deployed within their organizations, rapidly evolving into autonomous systems.
Agentic AI is spreading rapidly; 86% of organizations said they are testing AI agents and nearly half already have them in production, according to the report. And although nearly all companies are spending on governance, only 64% have a formal AI acceptable use policy that they actively communicate to employees, 57% maintain formal policies and 44% have AI-specific incident response procedures.
Many organizations are deploying AI faster than IT can track, according to a June IBM Institute for Business Value study, and two-thirds of CIOs and CTOs said they are held accountable for AI systems that they do not fully control. Only 1 in 5 companies reported having a mature model for governing autonomous agents, a gap that can increase the risk of vulnerabilities, a Deloitte study from earlier this year found.
As companies deploy more autonomous AI capabilities, governance shouldn’t be treated like a one-time exercise, Manimbo said in a statement. Organizations have to build in continuous processes of oversight, accountability and validation.
Organizations that deploy meaningful governance see tangible value, Schellman’s report found. Respondents said that they were seeing improved internal efficiency, an easier time scaling AI and innovation and an increase in customer trust.
Professionals also reported feeling more prepared for new regulations. A majority of companies said they were getting ready to comply with U.S. regulations, and nearly one-third saoid they were preparing to comply with the EU AI Act.
Governance has shifted from an optional factor in AI deployment to a mandatory one, Avani Desai, CEO of Schellman, said in a statement. Customers, regulators, boards and business partners want proof that governance is working.
“The organizations that build trust through mature, demonstrable governance programs will be better positioned to scale AI, navigate regulatory change and create long-term business value,” Desai said.
