New Global Report: Executive Insights on AI Strategy, Risks, and Readiness
The ERM Initiative, in partnership with AICPA & CIMA, has released a major global report — Executive Perceptions of Artificial Intelligence (AI) Opportunities and Risks — capturing insights from 1,735 executives across eight regions and eight industries. The report explores how senior leaders perceive the strategic opportunities of AI, the emerging risks, and the widening gap between organizations that are ready for AI—and those that are not.
Key Findings at a Glance
1. AI adoption is growing, but readiness is uneven.
- Organizations face significant gaps in talent, technology, and governance readiness.
- Early adopters are already realizing measurable strategic gains — but also recognize rising and fast‑evolving AI risks.
- AI adoption patterns differ sharply across regions and industries.
2. Early AI adopters are pulling ahead.
Among the 453 “early adopter” organizations:
- 73% report that AI is already delivering strategic advantage.
- 54% fear competitors may outpace them through AI.
- 69% classify AI as a Top 10 or major risk.
- 65% say AI risks receive executive or board‑level attention (vs. 30% overall).
These organizations are gaining strategic lift while simultaneously experiencing heightened risk pressures.
3. For most organizations, readiness is the roadblock.
Across the full sample:
- Only 24–27% report adequate AI‑skilled talent, IT system capacity, or regulatory preparedness.
- Smaller organizations are even less prepared — fewer than 1 in 5 have the necessary capabilities.
- In contrast, AI‑Transformed organizations are nearly twice as prepared across talent, IT, and regulatory readiness metrics.
4. AI impact varies significantly by geography and industry.
Geographical Insights:
- Emerging markets — including South Africa, Central & South Asia, and East/Southeast Asia — show the highest levels of strategic AI adoption (36–42%).
- North America and Europe lag behind at 18–22%, reflecting more cautious approaches.
Industry Insights:
- Mining, Professional & Business Services, and Transportation exhibit strong momentum driven by automation and analytics.
- Financial Services report elevated competitive concern (33% fear competitors will outpace them).
- Sectors like Construction and Wholesale/Retail remain slower adopters due to operational fragmentation and legacy systems.
5. AI risks are escalating quickly.
- 46% of organizations now classify AI as a Top 10 or major risk (rising to 69% among AI‑Transformed entities).
- 26% say AI risks are evolving rapidly — jumping to 60% for highly AI‑mature organizations.
- Industries such as Financial Services report the fastest‑changing risk landscapes and strongest board engagement.
These trends highlight the need for strengthened AI governance, model risk oversight, and enterprise‑wide risk management frameworks.
Explore data-rich insights, charts and regional breakdowns in the full analysis.
Why This Matters for Risk Leaders
As artificial intelligence accelerates across industries, the role of risk leaders is becoming more critical than ever. This research reveals a widening gap between organizations that are strategically integrating AI and those that are struggling to build even basic readiness — creating significant implications for enterprise‑wide risk oversight.
| Why This Matters | What Risk Leaders Should Consider |
|---|---|
| AI is reshaping strategic risk — faster than most organizations can keep up. | Be prepared to anticipate and govern risks that are dynamic, technical, and deeply intertwined with strategy. |
| Early adopters are gaining competitive advantage — and amplifying their risk exposure. | Help other executives understand that AI can no longer be treated as an isolated technology risk; it is a core strategic driver that demands integrated oversight. |
| Talent, governance, and systems readiness are now enterprise-level constraints. | Consider if AI capability gaps represent material organizational risks — affecting resilience, compliance, and strategic agility. |
| Geographic and industry differences signal uneven risk landscapes. | Understand these external signals to anticipate competitive shifts and sector‑specific vulnerabilities. |
| Stronger ERM integration is essential for responsible AI adoption. | Evaluate how these capabilities need to be integrated at the core of effective ERM. |
About the Report and the Authors
Executive Perceptions of Artificial Intelligence (AI) Opportunities and Risks: A Global Analysis is a joint research study by the ERM Initiative at NC State University and AICPA & CIMA. The Fall 2025 survey gathered insights from 1,735 executives representing eight industries, eight global regions, and organizations of varying sizes to assess AI’s strategic impact, operational challenges, and risk implications.
The report is authored by:
- Mark S. Beasley, PhD – Director, ERM Initiative; Alan T. Dickson Distinguished Professor of Accounting
- Bruce C. Branson, PhD – Associate Director, ERM Initiative; Professor of Accounting
- Donald P. Pagach, PhD – Director of Research, ERM Initiative; Professor of Accounting
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