AuditBoard has released its latest Risk Intelligence Report, uncovering a significant gap in the corporate approach to risk management. According to the findings, although 53% of companies are integrating AI tools, many remain hindered by inconsistent execution, leading to decreased confidence and stalled progress.
This inaugural report leverages proprietary platform data, encompassing a substantial portion of the Fortune 500, along with survey insights from over 400 global risk leaders.
The report identifies the “middle maturity trap” as the central impediment for organisations striving to translate high levels of investment into sustainable resilience and future-readiness.
Happy Wang, AuditBoard’s Chief Product and Technology Officer, states, “Today’s risk environment is more complex and dynamic than ever, and enterprises are increasingly turning to AI to navigate this threat landscape. Our data shows that enterprises are eager to experiment and invest, but the intent is not translating into reliable execution.”
Key insights reveal that 53% of enterprises are adopting AI tools, with 39% expanding their AI and machine learning capabilities.
However, confidence levels have plunged by approximately 30% since July, following initial high adoption rates in May and June. This fluctuation is attributed to a lack of clear governance, causing many initiatives to remain in a prolonged “pilot mode.” Additionally, fewer than 30% of leaders feel equipped to meet pending AI governance requirements, signalling a trust deficit resulting from ambiguous ownership.
Two-thirds of enterprises report organisational silos, which hamper coordinated efforts. The “middle maturity trap” manifests through episodic activities like collaboration spikes that do not endure.
For example, while collaboration saw a significant increase in July, it quickly waned, hindering continuous advancement. AuditBoard’s report delineates five dimensions of connected risk, including AI & Automation and Collaboration, and highlights a lack of consistency across these dimensions.
Leaders who effectively navigate this maturity trap leverage risk management as a source of foresight and reliability. They embed risk oversight as a routine item for board and executive meetings rather than a reactive exercise and emphasise continuous control adoption and risk logging.
Raul Villar Jr., Chief Executive Officer at AuditBoard, emphasises the growing importance of consistent governance, remarking, “AI implementation is becoming a defining moment for every enterprise. Our research shows that the ‘middle maturity trap’ isn’t a budget problem; it’s an execution gap where inconsistent governance undermines the full promise of AI.” To address this, organisations are encouraged to establish governance clarity, drive execution discipline, and scale market prowess.
