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AI Governance Gap Widens as Businesses Prioritize Adoption Over Controls

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A significant AI governance gap exists as businesses rush to adopt AI without implementing necessary controls and processes. Only a quarter of businesses have an AI governance program in place, and even fewer monitor employee use of AI tools or have processes to assess AI risks. This gap poses new risks to businesses, including vulnerabilities and reputational damage. The British Standards Institution (BSI) highlights the lack of strategic oversight and clear guardrails in AI adoption, warning of potential harmful applications and avoidable failures. The study reveals that senior management often overlooks AI as a source of business risk, and many organizations lack formal risk assessment processes. The management of data used to train large language models (LLMs) is a critical area of concern, with many business leaders unaware of their organization's data sources and management practices.

Timeline

  1. 29.10.2025 12:00 1 articles · 12d ago

    BSI Warns of AI Governance Gap in Businesses

    The British Standards Institution (BSI) has identified a significant AI governance gap as businesses rush to adopt AI without implementing necessary controls and processes. Only 24% of businesses have an AI governance program in place, and even fewer monitor employee use of AI tools or have processes to assess AI risks. The BSI warns of potential harmful applications and avoidable failures due to overconfidence and fragmented governance approaches. The management of data used to train large language models (LLMs) is a critical area of concern, with many business leaders unaware of their organization's data sources and management practices. The BSI emphasizes the need for proactive, comprehensive AI governance to mitigate risks and ensure strategic oversight.

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Information Snippets

  • 62% of business leaders plan to increase AI investment over the coming year.

    First reported: 29.10.2025 12:00
    1 source, 1 article
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  • Only 24% of businesses have an AI governance program in place.

    First reported: 29.10.2025 12:00
    1 source, 1 article
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  • 47% of businesses control AI through formal processes.

    First reported: 29.10.2025 12:00
    1 source, 1 article
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  • 34% of businesses use voluntary codes of practice for AI governance.

    First reported: 29.10.2025 12:00
    1 source, 1 article
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  • 24% of businesses monitor employee use of AI tools.

    First reported: 29.10.2025 12:00
    1 source, 1 article
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  • 30% of businesses have processes to assess AI risks and mitigations.

    First reported: 29.10.2025 12:00
    1 source, 1 article
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  • 22% of businesses restrict employees from using unauthorized AI.

    First reported: 29.10.2025 12:00
    1 source, 1 article
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  • Only 30% of executives have a formal risk assessment process for AI vulnerabilities.

    First reported: 29.10.2025 12:00
    1 source, 1 article
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  • Only 28% of business leaders know where their organization sources data for LLMs.

    First reported: 29.10.2025 12:00
    1 source, 1 article
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  • 40% of businesses have processes to manage confidential data used for training LLMs.

    First reported: 29.10.2025 12:00
    1 source, 1 article
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  • Only 30% of organizations have a process for logging concerns or inaccuracies with AI.

    First reported: 29.10.2025 12:00
    1 source, 1 article
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  • 29% of organizations have processes for managing AI incidents.

    First reported: 29.10.2025 12:00
    1 source, 1 article
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