AI Governance Becomes Board Priority as Companies Struggle to Keep Pace

Fortune 500 companies have made significant strides in formalizing AI governance structures, with 70% of executives surveyed by Sedgwick, a global risk and claims administration partner, stating that their companies have AI risk committees. However, the same survey of 300 senior leaders revealed a stark contrast between these formal frameworks and the companies' actual readiness for AI deployment, with only 14% saying they are fully prepared. This gap highlights the challenges companies face in operationalizing AI governance, despite their efforts to establish oversight. According to the 2026 forecasting report, 67% of surveyed executives reported progress on AI infrastructure, while 41% have a dedicated AI governance team. However, the rapid pace of AI change and difficulties in executing governance and management processes remain the leading implementation challenges. "The foundations needed to operationalize those frameworks, processes, controls, tooling, and skills embedded in day-to-day work have not kept pace," said the report. This underscores the need for companies to bridge the gap between formal governance structures and real-world AI readiness. The survey, which included C-suite executives, EVPs, SVPs, VPs, and directors, provides valuable insights into the current state of AI governance in Fortune 500 companies. The findings suggest that while executives have moved quickly to establish oversight, the operational aspects of AI deployment remain a significant challenge. "The pace of AI change is so rapid that it's difficult for companies to keep up," said a senior executive at a leading technology firm, who wished to remain anonymous. "We're seeing new AI technologies emerge every quarter, and it's hard to determine which ones to invest in and how to integrate them into our existing systems." The lack of preparedness for AI deployment has significant implications for companies and society as a whole. AI systems can have far-reaching consequences, from bias and discrimination to job displacement and cybersecurity risks. As AI becomes increasingly pervasive, companies must prioritize AI governance to ensure that these systems are developed and deployed responsibly. "AI governance is not just a technical issue, it's a business imperative," said a spokesperson for Sedgwick. "Companies need to prioritize AI governance to mitigate risks and maximize benefits." The Sedgwick report highlights the need for companies to invest in AI governance infrastructure, including processes, controls, tooling, and skills. This requires a fundamental shift in how companies approach AI deployment, from a focus on technical capabilities to a focus on governance and oversight. As AI continues to evolve, companies must prioritize AI governance to ensure that these systems are developed and deployed responsibly. In the coming months, companies will need to address the challenges highlighted in the Sedgwick report. This will require significant investments in AI governance infrastructure, as well as a fundamental shift in how companies approach AI deployment. As the pace of AI change continues to accelerate, companies must prioritize AI governance to mitigate risks and maximize benefits.