AuditBoard has released its latest Risk Intelligence Report, uncovering a significant gap in the corporate approach to risk management. According to the findings, although 53% of companies are integrating AI tools, many remain hindered by inconsistent execution, leading to decreased confidence and stalled progress.
This inaugural report leverages proprietary platform data, encompassing a substantial portion of the Fortune 500, along with survey insights from over 400 global risk leaders.
Proprietary Platform Insights
The report identifies the "middle maturity trap" as the central impediment for organisations striving to translate high levels of investment into sustainable resilience and future-readiness.
Happy Wang, AuditBoard’s Chief Product and Technology Officer, states, "Today's risk environment is more complex and dynamic than ever, and enterprises are increasingly turning to AI to navigate this threat landscape. Our data shows that enterprises are eager to experiment and invest, but the intent is not translating into reliable execution."
AI as a Measure of Risk Maturity
Fewer than 30% of leaders feel equipped to meet pending AI governance requirements
Key insights reveal that 53% of enterprises are adopting AI tools, with 39% expanding their AI and machine learning capabilities.
However, confidence levels have plunged by approximately 30% since July, following initial high adoption rates in May and June. This fluctuation is attributed to a lack of clear governance, causing many initiatives to remain in a prolonged "pilot mode." Additionally, fewer than 30% of leaders feel equipped to meet pending AI governance requirements, signalling a trust deficit resulting from ambiguous ownership.
"Middle Maturity Trap" Obstructs Progress
Two-thirds of enterprises report organisational silos, which hamper coordinated efforts. The "middle maturity trap" manifests through episodic activities like collaboration spikes that do not endure.
For example, while collaboration saw a significant increase in July, it quickly waned, hindering continuous advancement. AuditBoard’s report delineates five dimensions of connected risk, including AI & Automation and Collaboration, and highlights a lack of consistency across these dimensions.
Governance: A Strategic Tool
Leaders who effectively navigate this maturity trap leverage risk management as a source of foresight and reliability. They embed risk oversight as a routine item for board and executive meetings rather than a reactive exercise and emphasise continuous control adoption and risk logging.
Raul Villar Jr., Chief Executive Officer at AuditBoard, emphasises the growing importance of consistent governance, remarking, “AI implementation is becoming a defining moment for every enterprise. Our research shows that the 'middle maturity trap' isn’t a budget problem; it’s an execution gap where inconsistent governance undermines the full promise of AI.” To address this, organisations are encouraged to establish governance clarity, drive execution discipline, and scale market prowess.
For more detailed insights, the full Risk Intelligence Report and its action plan are available for download on AuditBoard's website.
AuditBoard, the AI-powered global platform for connected risk, announces the findings of its Risk Intelligence Report - revealing a critical disconnect in enterprise risk management: while 53% of companies are implementing AI tools, many are trapped in cycles of inconsistent execution, resulting in sharp drops in confidence and deployment stalling in "pilot mode."
Proprietary platform data
The inaugural report, which combines proprietary platform data that includes over 50% of the Fortune 500 with survey insights from more than 400 global risk leaders, identifies the "middle maturity trap" as the primary barrier preventing organisations from converting high investment activity into sustained resilience and foresight.
"Today's risk environment is more complex and dynamic than ever, and enterprises are increasingly turning to AI to navigate this threat landscape," said Happy Wang, Chief Product and Technology Officer at AuditBoard. "Our data shows that enterprises are eager to experiment and invest, but the intent is not translating into reliable execution. The key difference between leaders and laggards is not budget, but the discipline to embed governance, ownership, and cadence across all risk dimensions."
Implementing AI tools
Key Findings from the Report:
- AI is the Defining Test of Risk Maturity, But Trust is Fragile
- High ambition, fragile execution: 53% of enterprises are implementing AI tools, and 39% are expanding AI/ML skills.
- Volatility in confidence: The survey found AI acceptance rates declined by roughly 30% in July, following strong initial adoption in May and June, with decision-making times lengthening. This volatility is directly linked to unclear governance, leaving adoption stuck in pilot mode.
- The governance gap: Fewer than 30% of leaders feel prepared for upcoming AI governance requirements, indicating a lack of clear ownership that undermines trust.
- Emerging risks are driving hiring: 70% of respondents expect to increase risk management staffing over the next two years, and 40% plan to increase cybersecurity staffing.
- The "Middle Maturity Trap" Hinders Resilience
- Coordination is lacking: Two-thirds of enterprises remain siloed in structure, systems, or decision-making.
- Follow-through is inconsistent: This trap is characterised by bursts of activity (such as spikes in collaboration or risk logging) that are not sustained. For instance, collaboration surged in July but quickly faded, preventing continuous progress.
- Implementation is incomplete: The report identifies five dimensions of connected risk (AI & Automation, Control Maturity, Frameworks & Coverage, Collaboration, and Risks & Issues Discipline) and shows that consistency across these dimensions is missing for most organisations.
- Leaders Turn Governance into Strategic Advantage
- The report finds that leaders who successfully break free of the middle maturity trap distinguish themselves by turning risk management into a source of foresight and trust:
- Institutionalising cadence: They make risk oversight a standing item at board and executive meetings rather than treating it reactively.
- Embedding discipline: They treat control adoption and risk logging as continuous management habits, not periodic compliance events.
- Connecting risk: They align Audit, Risk, Compliance, and Infosec on shared KPIs and institutionalise regular cross-functional engagement.
Inconsistent governance undermines
“AI implementation is becoming a defining moment for every enterprise," said Raul Villar Jr., Chief Executive Officer at AuditBoard. "Our research shows that the 'middle maturity trap' isn’t a budget problem; it’s an execution gap where inconsistent governance undermines the full promise of AI. To close this gap, businesses must make governance a continuous, shared habit across Audit, Risk, and Compliance teams.”
The report outlines a three-phase roadmap for enterprises to achieve "Connected Risk" maturity, encompassing Establish Governance Clarity, Drive Execution Discipline, and Scale Market Leadership.The full Risk Intelligence Report and action plan are available for download at their website.
