Eight in Ten UK Businesses Struggle to Keep Pace with AI Governance, IBM Study Finds

• 80% of surveyed executives in the UK say an AI-related incident reached their board or C-suite in the past year, with only 35% changing AI governance policy or frameworks in response
• 68% of respondents expect AI agents to have some form of autonomy towards decision by 2027, and 53% say their governance is designed to scale with agentic AI deployment
• When organisations want to deploy AI faster than governance and compliance frameworks for the intended use of AI are ready for, 61% continue within agreed risk limits while governance adapts; just over one in four (27%) delay deployment until governance is ready

LONDON, Oct. 15, 2026 /PRNewswire/ -- New research by IBM (NYSE: IBM) finds that AI-related incidents are widespread across the UK, but governance capabilities and risk accountability are not keeping pace with adoption of the technology.

Eight in ten UK executives surveyed say an AI-related incident - including an agent failure, data exposure, AI-driven decision error, or AI security breach - reached their board or C-suite in the past year. Yet fewer than half (35%) of those organisations cite a change to AI governance policy or frame works in response.

The findings come as the UK Government advances its AI Opportunities Action Plan, which seeks to accelerate AI adoption and economic growth while enabling safe and trusted development through regulation, safety and assurance. The research suggests UK ambition is strong, but governance must mature alongside adoption if organisations are to scale AI with confidence.

When AI deployment moves faster than governance readiness, the majority (61%) of these organisations report pressing ahead within agreed risk limits rather than pause. The research indicates UK organisations are less hesitant than counterparts in EMEA - only a quarter (27%) of UK respondents report delaying deployment entirely until their governance controls are ready, compared to a third (33%) across EMEA.

The findings highlight a growing governance challenge as AI agents take on more autonomous work. UK respondents are among the most ambitious in EMEA when it comes to AI adoption: 68% expect AI agents to have some level of autonomy decisions by 2027. Yet only 53% believe their governance structures can scale to manage that future, highlighting a potential readiness gap.

Leon Butler, Chief Executive, IBM UK and Ireland, said: 

"AI is moving faster than governance, and that gap is becoming a business risk."

"With the increase of AI agents this changes the equation again. When technology can act independently, organisations need more than approval processes. They need governance built into the system itself becoming an enabler, not a constraint. The winners in the AI era will be those that can trust, govern and scale it with confidence."

Julian David OBE, CEO of techUK, said:

"As AI becomes more deeply embedded in business operations, trust will be a key differentiator. Organisations need governance frameworks that enable them to innovate with confidence, ensuring AI agents operate transparently, responsibly and within clearly defined boundaries. The businesses that get this balance right will be best positioned to unlock AI's full potential."

Accountability & liability gap

Nearly all UK executives (97%) surveyed have formally assigned responsibility for AI risk at board level, including 31% with a dedicated board-level AI committee. Yet the research found no clear consensus on accountability for adverse outcomes from AI agents. An organisation's CIO or CTO was the most frequently cited role, selected by just one in five (20%) of all respondents.

There is also no consensus on legal liability when an AI system causes significant harm: 20% say it should be shared proportionally between deployer and vendor, 16% say there should be a regulatory framework that does not yet adequately exist, and 15% say it should sit with the AI vendor or technology provider.

To manage increasingly autonomous AI agents making decisions without human approval at each step by 2027, UK executives expect to need formal legal or contractual frameworks defining AI vendor liability for agent failures (32%), defined human escalation thresholds (37%), real-time monitoring and audit trails of agent decisions and actions (33%) and the ability to immediately halt agent activity across the enterprise (27%).

Other key findings include:

• Measurement of financial risk exposure less established than board ownership: More than half (64%) of surveyed UK executives govern generative AI tools and agentic AI systems as distinct risk categories with separate governance frameworks and a further 29% apply the same core frameworks but with additional controls to agentic AI. However, only half (50%) have a formal, board-reviewed quantification of the financial risk created by gaps in their AI governance.
• Supply chain risk: 46% of all UK respondents acknowledge gaps or limitations in how their governance framework covers the AI systems and models used by key vendors, technology partners and supply chain participants. Only 19% continuously monitor third-party AI risk and 14% apply independent assurance or certification requirements.

Study methodology

Censuswide conducted the research on behalf of IBM among 3,221 executive management respondents, including C-level executives, at organisations with 1,000 or more employees across the UK, France, Germany, Italy, Spain, the Netherlands, Saudi Arabia and the UAE. This included 504 respondents in the UK. The research was conducted between 14 and 24 September 2026.

About IBM

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