AI Growth Outpaces Governance — Are You Prepared for Rising Risks?

CDO Magazine’s latest study conducted with leading AI governance software provider ModelOp benchmarks organizations’ progress in implementing AI governance to support their fast-expanding AI initiatives.

The "Responsible AI Benchmark Report 2024" paints a concerning picture of a widening gap between the rapid adoption of AI and the implementation of responsible AI governance practices. The report highlights inadequacies in organizational AI governance despite mounting AI risks.

"Less than 2% of CEOs can identify how AI is being used and its risks in their organizations. AI investments will be wasted in an enterprise without AI governance," says ModelOp CEO and Co-founder Pete Foley.

The study analyzes trends in areas like AI development and production, AI governance budgets, reliance on third-party models, regulatory concerns, and the use of AI tools. Based on insights from nearly 150 executives across diverse sectors, the report offers crucial data points and actionable recommendations for leaders facing these challenges.

Key Findings:

• Explosive AI Growth, Lagging Governance:  While an impressive 81% of respondents have at least one AI initiative in production (with some sectors exceeding 100 use cases), 23% admit their AI governance capabilities are not effective at all and only 15% say their capabilities are very effective.

• Reliance on Vendors:  Most respondents (77%) indicate they are using at least a few vendor models or services. In contrast, only 48% of respondents report using proprietary tools.

• Difficulty Measuring Success:  While 39% of respondents consider their capabilities for reporting ROI for AI initiatives to be moderately effective, another 39% consider them to be not effective at all.

• Chief AI Officer (CAIO) Role Not Widespread:  Two-thirds (66%) of respondents say their organizations have no plans to establish a CAIO role. However, there appears to be a positive correlation between larger AI governance budgets and the presence of a CAIO.

"As AI continues to evolve and integrate into business, it is imperative for organizations to establish robust governance frameworks. Creating this one-of-a-kind ‘Responsible AI Benchmark Report 2024,’ we aimed to illuminate these critical gaps for enterprise data, analytics, and AI leaders," says CDO Magazine Founder and Publisher Steve Wanamaker.

Uncover the report's in-depth analysis and gain valuable insights to bolster your organization's AI governance. Download the "Responsible AI Benchmark Report 2024" to:

• Learn best practices for implementing effective AI governance.

• Benchmark your organization's progress against industry trends.

• Develop a comprehensive strategy to mitigate AI risks and maximize returns.