Survey Finds Most Organizations Have AI Governance but Few Apply It Effectively

The American Arbitration Association-International Centre for Dispute Resolution has published a new benchmark study showing that most large organizations have established AI governance frameworks but struggle to make them work effectively. The findings were announced in a press release based on a survey of 500 senior legal and executive leaders from major U.S. and Canadian companies.

According to the report, 87 percent of respondents said their organizations have AI governance systems in place, but only 22 percent consider them effective. The main weaknesses identified include a lack of defined escalation processes when AI systems malfunction, limited audit readiness, and inconsistent involvement of legal and compliance teams. Only one third of organizations reported having clear escalation pathways, and just over one fifth said they were confident they could demonstrate governance decisions to regulators.

The survey also found that while IT teams often lead AI governance, only 35 percent of organizations include legal and compliance departments in the process. Despite CEOs recognizing the importance of accountability, only 21 percent hold final authority over AI deployment. The report notes that organizations with more extensive AI use tend to have stronger governance and greater confidence in oversight.

The study, titled "From Principles to Practice: A Benchmark Study in AI Governance," is part of the association’s broader effort to promote responsible AI use in dispute resolution and support organizations in building practical governance systems.