Majority of Corporations Unready for AI Audits, 2024 Survey Finds
A 2024 survey finds 78% of business leaders doubt their companies could pass an AI governance audit.
Why it matters: AI adoption is widespread, but weak oversight leaves corporations vulnerable to regulatory action and data breaches. Legal and compliance teams must act rapidly as internal and external risks escalate.
- 78% of senior leaders lack confidence they’d pass a 90-day AI governance audit.
- Just 7% of companies have fully established AI governance despite rapid AI expansion.
- 44% of U.S. staff use AI tools without approval; 46% have shared sensitive data with AI systems.
- Only 12% of leaders say their workforce is ready for responsible AI use.
Corporations are rapidly deploying AI, but oversight is lagging sharply, according to the 2024 Grant Thornton survey. Over three-quarters of senior business leaders doubt their organizations could pass an independent AI audit within 90 days.
- AI governance audits assess whether a company’s policies, training, and compliance controls are sufficient to manage legal, ethical, and operational risks arising from AI use.
- While 93% of organizations employ some form of AI, just 7% report fully embedded governance structures—far below what’s needed for regulatory compliance, according to IT Pro.
- Tom Puthiyamadam, Managing Partner at Grant Thornton Advisors, says, “AI deployment is simply outpacing the infrastructure that supports it.”
The risk is not just theoretical. A KPMG poll shows internal compliance gaps: 44% of U.S. workers use AI tools without management’s approval, and nearly as many (46%) have uploaded sensitive business data to public AI systems, exposing firms to regulatory scrutiny and data loss. Only 12% of business leaders say their workforce is adequately prepared to handle AI responsibly.
These gaps present clear legal, financial, and reputational risks. Samantha Gloede of KPMG notes “half of US workers are using AI tools without clear authorization, and many have admitted to using AI inappropriately.”
Robust governance pays off—organizations with strong controls are almost four times likelier to achieve revenue growth from AI initiatives compared to those at the pilot stage.
With digital and IT investment rising (68% of CFOs plan increases this year), legal teams must move fast to design, audit, and enforce AI oversight regimes as regulators begin to scrutinize corporate AI practices.
By the numbers:
- 78% — business leaders not confident in passing a 90-day AI audit
- 7% — companies reporting fully embedded AI governance
- 44% — U.S. staff using AI without approval
- 46% — employees sharing sensitive data with public AI
Yes, but: Most data comes from consulting firms, not government or regulatory audits, so gaps may be wider or narrower in practice.
What's next: Expect further regulatory guidance and possible enforcement as regulators ramp up AI scrutiny in 2024.