AI Adoption Accelerates as Governance and Risk Lag

Gallagher's third annual AI Adoption and Risk Survey of more than 1,200 global businesses shows adoption accelerating, with 63 percent reporting artificial intelligence (AI) is fully operationalized or implemented in parts of the business, up from 45 percent in 2025, according to the article. Only 4 percent of businesses in 2025 report no experimentation with AI, compared with 18 percent in 2023. Common applications include IT operations management, client-facing tools such as chatbots and personal assistants, and research and analytics. 

Most respondents report measurable benefits: 82 percent say AI has had a positive impact on their organization, and 83 percent believe it will drive future revenue growth, according to the survey. Eighty-six percent describe AI's effect on employee productivity as very positive or quite positive, including 91 percent in the United States. Nearly two-thirds are actively measuring return on investment and estimate it will take an average of 28 months to realize returns. 

Workforce pressures remain a constraint. More than half of respondents cite skills gaps and recruitment challenges as barriers to further implementation, followed by technical infrastructure and compliance concerns, per Gallagher. Fifty-nine percent report workforce reductions or plans to reduce headcount. Impacts are above the global average in Australia, India, Japan, and South Korea, and sectors such as telecoms, technology, energy, and financial services report greater disruption. 

Risk awareness has increased, though governance frameworks lag. Ninety-three percent of respondents say they understand AI risks quite well or very well, up from 77 percent in 2024, according to the article. AI errors, misinformation, and hallucinations rank as the top perceived threat at 57 percent, followed by legal and reputational risks at 56 percent and data protection and privacy violations at 55 percent. Fewer than half of organizations have implemented formal risk management frameworks or AI-specific incident response plans. 

"Embedding AI in the operating model means redesigning processes and role definitions and building scalable AI platforms, and very few organizations are at that stage yet," Ben Warren, managing director, people, data, AI, and innovation at Gallagher, said, per the article.  Only 56 percent of organizations have communicated their AI strategy to employees. Implementation of mitigation strategies ranges between 43 percent and 56 percent, indicating uneven governance maturity. 

Insurance implications are emerging. One in five insurance industry respondents report a client loss tied to AI-related risks in the past year, with just over half fully covered by insurance, according to Gallagher. Gallagher's 2026 Cyber Insurance Market Outlook identifies more than 200 active legal cases involving AI and machine learning across cyber, employment practices, product liability, and errors and omissions exposures. Respondents anticipate AI-specific policies, endorsements, and revised policy language as claims activity develops.