Tuesday, 18 March 2025
29.2 C
Singapore
30.5 C
Thailand
26.6 C
Indonesia
26.8 C
Philippines

Business leaders warn of AI responsibility crisis as governance lags behind innovation

A new NTT DATA report reveals that 81% of business leaders see AI innovation outpacing governance, creating risks in security, ethics, and public trust.

A new report from NTT DATA reveals that while businesses are racing to adopt artificial intelligence (AI), a growing responsibility gap threatens progress. More than 80% of executives admit that leadership, governance, and workforce readiness are not keeping up with AI advancements, putting investment, security, and public trust at risk.

The report, The AI Responsibility Gap: Why Leadership is the Missing Link, is based on insights from over 2,300 C-suite leaders and decision-makers across 34 countries. It highlights the urgent need for leadership-driven strategies to ensure AI innovation aligns with ethical responsibility.

“The enthusiasm for AI is undeniable, but our findings show that innovation without responsibility is a risk multiplier,” said Abhijit Dubey, Chief Executive Officer, NTT DATA, Inc. “Organisations need leadership-driven AI governance strategies to close this gapโ€”before progress stalls and trust erodes.”

Key findings: AI governance is failing to keep up

  1. Innovation and responsibility are at odds in the boardroom – Business leaders are divided on whether responsibility or innovation should take priority. A third of executives believe responsibility is more important than innovation, while another third prioritises innovation over safety. The remaining third views them as equally important.
  2. Unclear regulations slow down AI investment – More than 80% of executives say a lack of clear government regulations is discouraging AI adoption, leading to delays in investment and implementation.
  3. Security and ethics concerns grow – Despite ambitious AI adoption plans, 89% of executives worry about AI security risks. However, only 24% of Chief Information Security Officers (CISOs) believe their companies have a strong framework to balance AI risk with value creation.
  4. Workforce readiness is a major challenge – Two-thirds (67%) of executives say their employees lack the necessary skills to work effectively with AI. Additionally, 72% of companies do not have an AI policy in place to guide responsible use.
  5. AI’s impact on sustainability raises concerns – As businesses ramp up AI adoption, 75% of leaders report that AI ambitions conflict with corporate sustainability goals, forcing companies to rethink their approach to energy-intensive AI solutions.

Leadership must act to close the AI responsibility gap

NTT DATA warns that without strong leadership, AI innovation will outpace governance, leading to security risks, ethical concerns, and reduced trust in AI-driven solutions. To prevent this, organisations must take action in four key areas:

  • Building responsible AI from the start โ€“ AI, including generative AI, should be developed with security, compliance, and transparency in mind from the outset.
  • Strengthening AI governance โ€“ Companies must go beyond legal compliance and implement structured frameworks to uphold ethical and social standards.
  • Upskilling the workforce โ€“ Employees need proper training to work alongside AI and fully understand its risks and opportunities.
  • Global collaboration on AI policies โ€“ Governments, businesses, and industry leaders must work together to create clear and actionable AI governance frameworks.

“AIโ€™s trajectory is clearโ€”its impact will only grow. But without decisive leadership, we risk a future where innovation outpaces responsibility, creating security gaps, ethical blind spots, and missed opportunities,” Dubey added. “By embedding responsibility into AIโ€™s foundationโ€”through design, governance, workforce readiness, and ethical frameworksโ€”we unlock AIโ€™s full potential while ensuring it serves businesses, employees, and society at large equally.”

Hot this week

How to stream Nvidia GTC 2025 and catch Jensen Huangโ€™s keynote

Nvidia GTC 2025 kicks off this week. Watch CEO Jensen Huangโ€™s keynote and explore AI, robotics, and GPU updates live online.

EduSpaze welcomes seven edtech startups in its 10th cohort to transform learning in Southeast Asia

EduSpaze welcomes seven edtech startups to its 10th cohort, focusing on AI-driven learning, job readiness, mental health, and workforce upskilling.

Apple may add live translation to AirPods with iOS 19 update

Apple could add live translation to AirPods with iOS 19, simplifying real-time conversations in other languages. Find out more about this update.

Airwallex partners with Discover Global Network to expand payment options

Airwallex partners with Discover Global Network, allowing merchants to accept Discover and Diners Club International cards, reaching 345 million cardholders.

NTT DATA boosts India’s digital future with major AI and infrastructure investments

NTT DATA boosts India's digital future with AI expansion, MIST cable launch, and Indiaโ€™s largest data centre campus, driving innovation and connectivity.

Nominations open for 4th edition of Singapore 100 Women in Tech Awards

Nominations for the 4th Singapore 100 Women in Tech Awards are open, celebrating women in tech. Submit nominations by 30 April 2025.

IT leaders accelerate AI PC adoption despite security and infrastructure concerns

A new AMD and IDC survey reveals that 82% of IT leaders plan to adopt AI PCs by year-end, despite security and infrastructure concerns.

Samsung to launch Galaxy A56 5G and Galaxy A36 5G in Singapore on 28 March

Samsung will launch the Galaxy A56 5G and A36 5G in Singapore on 28 March 2025, featuring AI tools, upgraded cameras, and exclusive launch promotions.

Airwallex partners with Discover Global Network to expand payment options

Airwallex partners with Discover Global Network, allowing merchants to accept Discover and Diners Club International cards, reaching 345 million cardholders.

Related Articles