AI Governance Gap: C-Suite Confidence vs. Consumer Concerns

AI Adoption Surges Ahead of Governance

Recent findings reveal a significant disconnect between the confidence of C-suite executives in AI systems and the levels of governance currently in place. Despite a majority of organizations integrating AI into their initiatives, a troubling gap exists concerning the responsible controls necessary to manage these technologies effectively.

Survey Overview

A comprehensive survey conducted among 975 C-suite leaders across 21 countries in March and April 2025 has shed light on the current state of AI governance. The results indicate that while nearly 72% of firms have incorporated AI into their operations, only a third have implemented adequate responsible controls for their existing AI models.

Current Governance Landscape

The report indicates that although many organizations claim to have principles for responsible AI, they often lack enforcement. On average, companies exhibit strong governance across only three of nine critical areas, which include accountability, compliance, and security.

Disparity in Sentiment

A notable finding from the survey is the disparity between executive and consumer sentiment regarding AI deployment. On average, consumers express twice the level of concern compared to C-suite executives about adherence to responsible AI principles. Specifically, only 14% of CEOs believe that their AI systems comply with relevant regulations, in contrast to 29% of other C-suite leaders.

This concern extends to issues surrounding the accountability of organizations for negative AI use, with 58% of consumers feeling that companies do not hold themselves accountable, compared to only 23% of executives. Similarly, 52% of consumers worry about organizational compliance with AI policies, whereas just 23% of executives share this concern.

Future Adoption of AI Technologies

Despite the existing governance gap, nearly all C-suite respondents anticipate adopting emerging AI technologies within the next year. A striking 76% of executives report currently using or planning to use agentic AI, although only 56% fully understand the associated risks. This gap in understanding is even more pronounced in the use of synthetic data generation tools, where 88% of organizations utilize them, yet only 55% are aware of the related risks.

Closing the Governance Gap

The findings underscore an urgent need to close the governance gap to ensure the successful and sustainable rollout of AI tools. Implementing responsible AI strategies is essential for safeguarding operations and maintaining consumer trust.

In light of the findings, it is crucial for executives to proactively address these governance issues by formulating responsible strategies to mitigate AI risks. Transparency about organizational use and protection of AI technologies is vital for building brand trust among consumers.

More Insights

AI Regulations: Comparing the EU’s AI Act with Australia’s Approach

Global companies need to navigate the differing AI regulations in the European Union and Australia, with the EU's AI Act setting stringent requirements based on risk levels, while Australia adopts a...

Quebec’s New AI Guidelines for Higher Education

Quebec has released its AI policy for universities and Cégeps, outlining guidelines for the responsible use of generative AI in higher education. The policy aims to address ethical considerations and...

AI Literacy: The Compliance Imperative for Businesses

As AI adoption accelerates, regulatory expectations are rising, particularly with the EU's AI Act, which mandates that all staff must be AI literate. This article emphasizes the importance of...

Germany’s Approach to Implementing the AI Act

Germany is moving forward with the implementation of the EU AI Act, designating the Federal Network Agency (BNetzA) as the central authority for monitoring compliance and promoting innovation. The...

Global Call for AI Safety Standards by 2026

World leaders and AI pioneers are calling on the United Nations to implement binding global safeguards for artificial intelligence by 2026. This initiative aims to address the growing concerns...

Governance in the Era of AI and Zero Trust

In 2025, AI has transitioned from mere buzz to practical application across various industries, highlighting the urgent need for a robust governance framework aligned with the zero trust economy...

AI Governance Shift: From Regulation to Technical Secretariat

The upcoming governance framework on artificial intelligence in India may introduce a "technical secretariat" to coordinate AI policies across government departments, moving away from the previous...

AI Safety as a Catalyst for Innovation in Global Majority Nations

The commentary discusses the tension between regulating AI for safety and promoting innovation, emphasizing that investments in AI safety and security can foster sustainable development in Global...

ASEAN’s AI Governance: Charting a Distinct Path

ASEAN's approach to AI governance is characterized by a consensus-driven, voluntary, and principles-based framework that allows member states to navigate their unique challenges and capacities...