Mark Rasdale

The comprehensive research-led report, titled AI Governance: Balancing Policy, Compliance, and Commercial Value, delves into the critical intersection of artificial intelligence, governance, and risk.

The report includes the findings of an original survey of 600 business leaders across the US, UK, Europe, Asia Pacific and the Middle East, of whom 96 per cent said they are rolling out AI, with nearly three-quarters (72 per cent) relying on tools and solutions from third-party vendors.

Nearly half (45 per cent) see AI as critical to how their organisation generates value, and 41 per cent foresee their core business being made redundant by AI unless they embrace it.

However, significant challenges include establishing and implementing good governance, which 99 per cent of respondents said was in their top five, as well as ensuring AI initiatives operate within regulatory guidelines (96 per cent).

Nearly half of respondents (43 per cent) have seen AI projects interrupted, paused or rolled back citing data privacy issues (48 per cent) and a lack of governance framework (37 per cent) as common reasons.

Half of respondents (49 per cent) want to unlock AI value in line with their organisational values, and 65 per cent have actively terminated AI supplier contracts over ethical concerns.

Over half of respondents are excluding legal and compliance teams from their AI decision-making.

Over a third (36 per cent) of respondents are not confident that they comply with current AI law, and 39 per cent are unclear on how regulation is evolving.

Mark Rasdale, partner and head of intellectual property and technology at DLA Piper Ireland, said: “In an era of emphatic discourse surrounding AI, our report unveils the critical truths, challenges and opportunities shaping the AI landscape. AI has infiltrated every sector, promising almost limitless competitive advantage.

“However, amidst the hype, we explore commercial risk and escalating concerns about responsible and compliant AI use.”

Mark O’Conor, partner and global co-chair of DLA Piper’s technology sector group, added: “To unlock AI’s potential, organizations must discern real concerns from ‘phantom’ risks.

“Our report underscores the pivotal role of good governance in navigating the AI landscape, reconciling risk and reward, compliance and commerce, and ultimately unlocking value in line with values.”