Governance professionals fear AI risk in Board reporting

The survey of more than 600 professionals reveals growing anxiety about the reliability, ethics and oversight of AI tools now being used across Boardrooms, and particularly so for tasks including risk analysis and corporate reporting.

Despite this finding, many organisations still lack clear policies, while only a minority of Boards have a defined AI strategy in place.

In other key findings, 37% of those professionals involved in the survey suggest that the biggest challenge is Board understanding of AI technology, while 50% expect AI to positively affect their role as opposed to 24% who anticipate negative consequences.

It emerges that Microsoft Copilot is the most commonly adopted tool.

Accuracy, ethics and trust

Peter Swabey, director of policy at The Chartered Governance Institute for the UK and Ireland, said: “AI is already being used in governance functions, often informally and without oversight. While tools such as Copilot can offer real efficiency gains, our research shows that governance professionals are deeply concerned about the risks to accuracy, ethics and trust. This report is a wake-up call for Boards. They need to develop clear strategies, invest in training and ensure that AI’s use aligns with sound governance principles.”

One of the first governance-focused studies of AI adoption in the UK, the research has combined two member surveys (conducted in the Spring and Autumn of 2024) to generate over. 600 responses.

Further, round table discussions and focus groups were conducted with professionals across sectors in addition to a review of FTSE 250 corporate reports over the last four years allowing the tracking of how AI is being referenced in governance and risk disclosures. 

Guidance, training and oversight

According to The Chartered Governance Institute for the UK and Ireland, the research findings “paint a picture of a profession aware of AI’s potential, but under-supported” when it comes to guidance, training and oversight.

*Further information is available online at www.cgi.org.uk