Responsible AI Governance Boosts Business Performance

Organisations adopting AI governance measures, specifically real-time monitoring and oversight committees, are far more likely to report improvements in revenue growth, employee satisfaction and cost savings.

According to the EY survey, nearly 98% of UK respondents said they had experienced financial losses due to unmanaged AI risks, with an average loss estimated at US$3.9 million.

Two-thirds (64%) of UK companies surveyed allow ‘citizen developers’ – employees independently creating or deploying AI agents - but only 53% have formal policies in place to ensure responsible AI practices.

Businesses that adopt advanced responsible AI practices are reporting greater improvements in revenue growth, cost savings and employee satisfaction according to findings from the latest EY Responsible AI (RAI) Pulse survey.

The survey of 975 C-suite leaders across 21 countries, including 100 UK respondents, evaluated how companies perceive and integrate responsible AI practices into their business models.

It found that eight in ten (80%) UK respondents reported that adopting AI has led to improvements in innovation whilst 79% said it had improved efficiency and productivity. The impact of AI was less pronounced in areas such as employee satisfaction (56%), revenue growth (50%) and cost savings (49%).

Organisations who are adopting AI governance measures, such real-time AI monitoring and oversight committees responsible for overseeing the ethical and responsible use of AI, are far more likely to report improvements in revenue growth, employee satisfaction and cost savings. Of the UK respondents interviewed, those with an oversight committee reported 35% more revenue growth, a 40% increase in cost savings and a 40% rise employee satisfaction.

Financial Impacts Of Unmanaged AI Risks

The survey also revealed the significant financial repercussions of unmanaged AI, with almost all (98%) of the organisations surveyed reporting losses due to AI-related risks, with nearly two-thirds (55%) experiencing losses exceeding US$1 million. The most common AI risks include non-compliance with regulations (57%), inaccurate or poor-quality training data (53%) and high energy usage impacting sustainability goals (52%).

C-Suite Knowledge Gaps In Identifying Appropriate Controls

When asked to identify appropriate controls against AI related risks, such as non-compliance with AI regulations, accurate or poor-quality trained data or cybersecurity vulnerabilities introduced by AI systems, only 17% of UK C-suite respondents answered correctly, highlighting the critical need for effective controls.

‘Citizen Developers’ Highlight Governance And Talent Readiness Gaps

The survey also revealed that many organisations are facing challenges in managing ‘citizen developers’— employees independently creating or deploying AI agents. Two-thirds of UK companies interviewed (64%) allow this activity, with 53% implementing formal policies to ensure alignment with responsible AI principles.

AI Risks Set To Increase As Agentic AI Becomes More Prevalent

Agentic AI - systems that autonomously make decisions and takes purposeful actions – is becoming more prevalent, and the survey found that most organisations are implementing governance policies to manage the associated risks. Eighty-one per cent of UK companies interviewed said they continuously monitor their agentic AI processes and models to ensure they adhere to responsible AI principles whilst 80% said they have incident escalation procedures in place in case an AI agent behaves unexpectedly. Despite this, only 34% of HR teams from the companies interviewed said they had started developing a strategy for managing a hybrid AI/human workforce.

Matthew Ringelheim, EY UK&I AI & Data Leader, said: “UK companies that see responsible AI as a strategic advantage instead of a overhead will lead the pack. They will build trust both within and beyond their organisation and accelerate speed to market — bringing the latest technologies into production ahead of their competitors."

"As organisations continue to navigate the complexities of AI integration, prioritising responsible governance will be essential for driving sustainable growth and maintaining a competitive edge in the market.”