AXA XL and S-RM warn AI adoption is outpacing governance. 88% of organisations now use AI in at least one business function. The gap exposes firms to cyber, operational, regulatory and third-party risks. The report sets five priorities for leaders. These include accountability, data protection, lifecycle risk management, vendor due diligence and loss scenario planning. AI risk rarely appears in isolation. It amplifies existing weaknesses in identity, data and supplier oversight. Pre-deployment assessment alone is insufficient. Oversight must continue throughout deployment and operation. Insurance products struggle to cover AI-driven incidents across multiple lines.
What changed
AI was used by 78% of organisations in the prior year.
What it unlocks
Building enterprise resilience by treating AI risk as a systemic issue rather than a technology or compliance problem.
- 88% of organisations use AI in at least one function
- 64% assess AI tool security before deployment
- 978% growth in US generative AI litigation 2021-2025
- 94% say AI will drive cybersecurity change in 2026
Sources