Intelligent CIO APAC Issue 69 | Page 18

TALKING POINT

ORGANISATIONS OVERLOOK AI RISK AS GOVERNANCE FAILS TO KEEP UP

Global AI security leader, TrendAI, has published new research revealing that organisations worldwide are pushing ahead with AI deployment despite known security and compliance risks.

The new global study * of 3,700 business and IT decisionmakers from 23 countries including Australia, found that 67 % have felt pressured to approve AI despite security concerns, with almost one in five Australian respondents( 19 %) describing those concerns as‘ extreme’ but overridden to keep pace with competitors and internal demand.
“ Organisations are not lacking awareness of risk, they’ re lacking the conditions to manage it,” noted Rachel Jin, Chief Platform & Business Officer, Head of TrendAI.“ When deployment is driven by competitive pressure rather than governance maturity, you create a situation where AI is embedded into critical systems without the controls needed to manage it safely. This research reinforces our focus on helping organisations drive solid business outcomes with AI while still managing business risk.”
The study also found the risk of pressure-driven AI rollout is exacerbated by governance inconsistencies and unclear responsibility for AI risk that is becoming widespread. The same is true for security teams working on a reactive basis to topdown AI rollout decisions, which often leads to workarounds and increased use of unsanctioned or‘ shadow’ AI tools. Recent TrendAI threat research reinforces this shift, showing how attackers are already using AI to automate reconnaissance, accelerate phishing campaigns and lower the barrier to entry for cybercrime, increasing both the speed and scale of attacks.
AI adoption is outpacing control in Australia
Australian organisations represented in the study are deploying AI faster than they can manage the associated risks, creating a widening gap between ambition and oversight. A large portion( 68 %) say AI is advancing more quickly than they can secure it, while 44 % of senior business decision-makers report only moderate understanding of legal frameworks governing AI.
Almost two-thirds of Australian organisations( 64 %) have comprehensive AI policies in place, however, more than 40 % report that unclear regulation or compliance standards and lack of internal policy and governance remain key barriers to safe AI adoption. In practice, governance maturity is low, with AI often operationalised before the rules governing its use are fully established.
Srujan Talakokkula, Managing Director ANZ of TrendAI, commented:“ While many organisations across Australia and New Zealand report strong confidence in AI preparedness and strong recognition of AI’ s role in combatting AI-driven threats, there is a clear gap in understanding of legal frameworks governing AI and differing views on accountability and human oversight across both business and IT leadership.
“ With governance challenges intensifying and AI-driven threats becoming more sophisticated, visibility of assets and risk management across the entire AI lifecycle is critical. This research highlights the importance of working with trusted partners that allow organisations to safely deploy and scale AI.” n
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