UK Businesses and AI: A Governance Crisis
The rapid adoption of artificial intelligence (AI) among UK businesses is occurring at an alarming pace, yet the necessary governance frameworks to manage this technology are severely lacking. Recent research reveals that while 93 percent of UK organisations are experimenting with AI, only a mere seven percent have established proper governance frameworks.
The State of AI Governance
According to the AI Governance Index 2025 by Trustmarque, more than half of UK companies admit to having either minimal governance or none at all. A staggering four percent of organisations consider their technology infrastructure fully AI-ready. Furthermore, fewer than one in four companies actively test for bias or explainability in their AI models, raising significant concerns about ethical implications and compliance.
Survey Insights
The research, which surveyed 507 IT decision makers, highlighted that most organisations are still reliant on outdated development processes. These processes have not been updated to address AI-specific risks such as model bias or interpretability gaps. Only 28 percent apply bias detection during testing, while even fewer, 22 percent, check whether their models can be explained.
Accountability for AI oversight is alarmingly fragmented. Nineteen percent of respondents acknowledged that there is no clear owner for governance activities. Moreover, only nine percent see alignment between IT leadership and governance efforts, leading to a disjointed approach to AI oversight. The lack of executive engagement results in governance being pushed down to departmental levels, rather than being treated as a strategic priority.
Challenges in Scaling AI
Only four percent of organisations claim that their data and systems are ready to scale AI. Key elements such as registries, audit trails, and model versioning are often managed manually or are entirely absent. This absence of structure results in only 18 percent of firms measuring the effectiveness of their governance through appropriate monitoring and KPIs.
The Consequences of Ignoring Governance
The findings suggest that AI adoption is outpacing the development of governance structures. Development teams often lack the proper tools and infrastructure, compounded by weak management buy-in for robust governance. The perception that governance is a constraint only exacerbates the issue.
However, organisations that have embraced AI governance report tangible benefits, including faster deployments, stronger accountability, and reduced manual review cycles. Governance is not merely a hurdle; it is a critical support function necessary for enabling responsible and scalable AI.
Conclusion
In summary, UK businesses are rushing into the world of AI without a clear understanding of the associated risks. The research underscores the urgent need for proper governance frameworks to mitigate compliance gaps and avoid poor outcomes. Implementing governance is essential for organisations aiming to scale AI safely and effectively, ensuring that the benefits of this transformative technology can be fully realised.
