CCI staff share recent surveys, reports and analysis on risk, compliance, governance, infosec and leadership issues. Share details of your survey with us: editor@corporatecomplianceinsights.com.
68% of companies have exceeded budget on AI projects
While many companies still struggle to show meaningful ROI on AI projects and concerns persist over the financial risk exposure presented by agentic AI, about two-thirds of executives (64%) say the value of AI agents outweighs the risk, according to a survey by AI security and governance platform WitnessAI.
Only 9% of survey respondents said that 75% or more of their AI projects have delivered measurable returns, while 68% said their AI projects have exceeded budgets during the past year. Just 4% said their AI projects always stay on budget.
Beyond AI budgets being busted, leaders may underestimate the cost of AI incidents, according to the survey. More than a fifth of leaders (21%) reported a single AI security incident costing $1 million or more in the past year, while 43% said the total net cost of all AI-related incidents in that time exceeded $2 million.
A few other key findings:
- 44% of executives say a significant part of their total revenue would be at risk from regulatory penalties if a rogue AI agent exposes data.
- 17% cite governance bottlenecks as the primary reason their AI initiatives underperform on ROI expectations.
- Responsibility for managing AI risk is dispersed, with the chief information officer leading the way (30%) but CISOs (15%) and others like chief technology officers and chief AI officers also playing a role.
1 in 5 UK managers don’t get sexual harassment training
More than a fifth of business managers in the UK don’t receive dedicated training on sexual harassment, according to a survey by compliance eLearning provider VinciWorks.
The poll found that of 985 UK-based HR and compliance professionals surveyed, 21% said business managers aren’t given specific training on sexual harassment. Another 10% responded that mangers receive training but not consistently, while managers’ sexual harassment training is part of general staff training for just under a third.
VinciWorks’ report comes ahead of changes in the UK Employment Rights Act that mandate more rigorous measures to prevent sexual harassment in the workplace; those are set to take effect in October.
The survey also found that 34% of employers have never carried out a sexual harassment risk assessment, which looks at where harassment could occur in the workplace, while 17% haven’t done an assessment in more than a year.
Other key findings include:
- Nearly half (47%) described their training as needing improvement, while 14% admitted they provide no sexual harassment training whatsoever.
- Almost 43% reported they don’t provide bystander intervention training, though they would like to and another 23% don’t play to start.
5 themes that will define legal functions by 2030
Gartner has identified five themes that it says will transform legal functions by 2030 in a new report.
Regulatory change will broaden legal’s role, the company said. GCs will face new regulatory issues and a rise in AI disputes, resulting in legal teams playing a larger role in risk appetite, compliance practices, AI governance and IP protection.
Geopolitical volatility will intensify trade and supply chain risk. Changing trade policy, national security, technology battles, data sovereignty and privacy concerns will force legal to work more on trade compliance and supply chains.
AI and DIY technologies will change how legal work gets done. Improvements from technology will require more governance, training and human oversight.
New talent and sourcing models will redefine legal delivery, with Gartner saying its analysts “expect a more fragmented legal services market, with managed services providers, alternative legal service providers, consultants and technology vendors taking a greater share of work, while reduced junior hiring may constrain the long-term talent pipeline.”
Finally, the firm says legal must support growth while operating with fewer resources.
