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

May 15, 2026
A new survey by the American Arbitration Association reveals that while most large organizations have AI governance frameworks, only a small fraction find them effective in practice, citing gaps in escalation processes, audit readiness, and legal involvement.

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.

We hope you enjoyed this article

Consider subscribing to one of our newsletters like Enterprise AI Brief, AI Policy Brief or Daily AI Brief.

Also, consider following us on social media:

Free newsletter

AI Policy Brief

Weekly report on AI regulations, safety standards, government policies, and compliance requirements worldwide.

Industry analysis

2025 Global Business Services Agenda: Gen AI Takes Center Stage

The Hackett Group

This industry analysis by The Hackett Group explores the transformative impact of generative artificial intelligence (Gen AI) on global business services (GBS) in 2025. The study highlights the shift from exploration to acceleration of Gen AI initiatives, with 89% of executives advancing these projects to improve customer satisfaction, innovate products, and reduce costs. The report also discusses the challenges and strategies for successful Gen AI adoption, emphasizing the need for a technology-enabled operating model and the importance of reskilling the workforce.

Read more
Free, six days a week

Daily AI Brief: the AI news that matters, in your inbox.