Robust governance is essential to mitigating AI risks and maintaining responsible systems, but the majority of companies have yet to implement a framework.
Commissioned by Prove AI and conducted by Zogby Analytics, the report surveyed more than 600 CEOs, CIOs and CTOs from major companies in the US, UK and Germany. The findings show that 96% of organizations are already using AI to support business operations, with the same percentage planning to increase their AI budgets in the coming year.
Top motivations for AI investments include increasing productivity (82%), improving operational efficiency (73%), improving decision making (65%) and achieving cost savings (60%). The most common cases of AI use were customer service and support, predictive analytics, and marketing and advertising optimization.
Despite the surge in AI investments, business leaders are well aware of the additional risks AI brings to their organizations. Data integrity and security emerged as the biggest barriers to implementing new AI solutions.
Executives also reported encountering several performance issues with AI, including:
- Data quality issues (e.g. inconsistencies or inaccuracies): 41%
- Challenges to detecting and mitigating bias in AI algorithms, leading to unfair or discriminatory outcomes: 37%
- Difficulties in quantification and measuring the return on investment (ROI) of AI initiatives: 28%
While 95% of respondents expressed confidence in their organization’s current AI risk management practices, the report revealed a significant gap in the implementation of AI governance.
Only 5% of executives reported that their organization has implemented an AI governance framework. However, 82% stated that implementing AI governance solutions is a somewhat or extremely urgent priority, while 85% plan to implement such solutions by summer 2025.
The report also shows that 82% of participants support an AI governance executive order to provide stronger oversight. Additionally, 65% expressed concerns about infringement of intellectual property rights and data security.
Mrinal Manohar, CEO of Prove AI, commented: “Executives are making themselves clear: the long-term effectiveness of AI, including providing meaningful returns on the massive investments organizations are currently making, depends on their ability to implement comprehensive AI develop and refine governance strategies. .
“The wave of AI-focused legislation coming into effect around the world only increases the urgency; To continue the current wave of innovation in a responsible manner, we must implement clearer guardrails to manage and monitor the data that informs AI systems.”
With global regulations such as the EU AI Act looming on the horizon, the report underlines the importance of reducing the risks of AI and the work that remains to be done. Implementing and optimizing specific AI governance strategies has become a top priority for companies looking to leverage the power of AI while mitigating associated risks.
The findings of this report serve as a wake-up call for organizations to prioritize AI governance as they continue to invest in and deploy AI technologies. Responsible implementation and robust governance frameworks will be critical to unlocking AI’s full potential while maintaining trust and compliance.
(Photo by Rob Thompson)
See also: Scoring AI Models: Endor Labs Unveils Evaluation Tool
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