AI risks rise as 43% of firms lack formal frameworks: Gallagher Re

Gallagher Re found just 44% had completed structured impact reviews.

Technology risks arise amongst global firms as 43% of organisations have yet to introduce formal artificial intelligence (AI) risk management frameworks, despite the rapid integration of the technology into daily operations.

According to Gallagher Re’s third annual AI Adoption and Risk Survey of 1,200 global companies, whilst insurance and risk mitigation strategies typically require rigorous impact assessments, the survey found that only 44% of businesses have conducted formal assessments related to their AI use. 

This lack of technical oversight persists even as 62% of firms have already delivered AI training to employees and 55% have hired for AI-specific roles.

AI is also driving a reported 86% increase in productivity. However, only 56% of organisations have communicated an AI strategy to their staff, leaving nearly half of the surveyed businesses without clear guidelines on how employees should interact with the technology.

From a liability and risk perspective, businesses are also prioritizing the retention of human oversight to mitigate potential failures in client interaction and complex problem-solving. 

Thirty-four percent of respondents cited the "human touch" in client relations as a reason to protect human jobs, whilst 31% noted that human intervention remains necessary for solving problems that technology cannot handle independently.