While 93% of companies recognize the risks associated with using generative AI inside their enterprises, only 9% say they’re prepared to manage the threat, according to research by Riskonnect, a risk management software provider.
Riskonnect’s research, informed by a global survey of more than 300 risk and compliance professionals, reveals a profound AI risk management gap: To date, only 17% of risk and compliance leaders have formally trained or briefed their organizations on the risks of using generative AI.
“Generative AI is taking off at lightning speed and ushering in a new wave of business risks. Our research shows that most companies have been slow to respond, which creates vulnerabilities across the enterprise,” Jim Wetekamp, the CEO of Riskonnect, said in a news release. “The rise of generative AI is the latest example of how quickly today’s risk landscape evolves. We’ve officially entered a new generation of risk.”
Riskonnect’s findings largely track with other research, including a report from The Conference Board, which found that while a majority of U.S. workers are using generative AI, few of their employers had put policies in place.
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The Riskonnect research, from its report titled “The New Generation of Risk,” also looked more broadly at the risk landscape. Key findings include:
- The generative AI threat is broad and interconnected: Companies’ top generative AI concerns include data privacy and cyber issues (65%), employees making decisions based on inaccurate information (60%), employee misuse and ethical risks (55%) and copyright and intellectual property risks (34%).
- Economic uncertainty and cyber concerns remain a persistent threat. The top four risks affecting organizations today, in order, are talent shortages and layoffs, recession risk, ransomware and security breaches and state-sponsored cyberattacks.
- Companies could be doing more to manage risk. Nearly two-thirds haven’t simulated their worst-case scenario. Only 5% feel prepared to assess, manage and recover from a future unknown and unpredictable risk event.
- Unreliable data hinders risk and compliance teams. Only 23% say they’re very confident in the accuracy, quality and actionability of their risk management data. Just 5% are very confident in their ability to extract, aggregate and report on risk insights to fuel decisions.
- Today’s talent shortages heavily impact business performance. The biggest risks companies associate with labor shortages and layoffs: mistakes and shortcuts driven by worker burnout (66%) and an inability to reach strategic goals (41%).