AuditBoard has warned that businesses’ growing investment in artificial intelligence is being undermined by weak follow-through and inconsistent governance.
The company’s inaugural Risk Intelligence Report, published this week, found that while more than half of enterprises are now deploying AI tools, many remain stuck in “pilot mode” — unable to scale from experimentation to disciplined, organisation-wide execution.
The report draws on proprietary platform data from over 50% of the Fortune 500, alongside survey responses from more than 400 global risk leaders. It identifies a “middle maturity trap” preventing businesses from converting AI ambition into sustained operational 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.”
Among the report’s findings, 53% of enterprises are implementing AI tools, and 39% are expanding AI and machine learning skills. Yet confidence levels have fluctuated sharply — acceptance rates fell by roughly 30% in July following early momentum in May and June — as unclear ownership and regulatory preparedness slowed decision-making. Fewer than 30% of respondents felt ready for upcoming AI governance requirements.
AuditBoard found that 70% of respondents expect to increase risk management staffing within two years, while 40% plan to boost cybersecurity recruitment. However, two-thirds of enterprises remain structurally siloed, with bursts of activity around collaboration or risk logging fading quickly — the pattern that defines the “middle maturity trap.”
“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 highlights that leaders who succeed in moving beyond this stage institutionalise governance and cross-functional cadence, embedding risk oversight at board level and linking Audit, Risk, Compliance, and Information Security through shared KPIs.
AuditBoard’s Risk Intelligence Report also outlines a three-phase roadmap for enterprises seeking “Connected Risk” maturity — encompassing governance clarity, disciplined execution, and market-wide scaling.
The full report is available at auditboard.com/risk-intelligence-report.
