IBM study finds AI governance lagging behind incidents at EMEA firms

A survey commissioned by IBM (NYSE: IBM) found that 80% of senior executives at organizations in Europe and the Middle East reported an AI-related incident reaching their board or C-suite in the past year, yet fewer than half — 40% — changed their AI governance policy or framework in response.

The study, conducted by Censuswide among 3,221 executives at organizations with 1,000 or more employees across the UK, France, Germany, Italy, Spain, the Netherlands, Saudi Arabia, and the UAE, was fielded between September 14 and 24, 2026.

Seventy-five percent of respondents expect AI agents to hold some level of decision-making autonomy by 2027, while only 37% say their governance frameworks are designed to scale with agentic AI deployment. Thirty-five percent report already running agentic AI in production.

When AI deployment outpaces governance readiness, 56% of surveyed executives said they proceed within agreed risk limits while governance adapts, and 33% delay deployment until governance is ready.

On accountability, nearly all respondents — 98% — have formally assigned AI risk responsibility at the board level, but no clear consensus exists on who bears responsibility when AI agents cause adverse outcomes. The CIO or CTO was the most frequently cited role, selected by just 17% of respondents.

Only 37% of organizations have a formal, board-reviewed quantification of financial risks stemming from AI governance gaps. On third-party risk, 54% acknowledged gaps in how their governance covers AI systems used by vendors and supply chain participants, with only 21% continuously monitoring third-party AI risk.

Regulatory drivers vary by region. In the EU, 41% of executives are accelerating governance investment ahead of the EU AI Act's high-risk obligations due in December 2027. In the UK, sector regulator expectations are the primary driver for 27% of respondents, while in Saudi Arabia and the UAE, national AI strategy requirements lead at 61%.

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