Companies across industries are adopting artificial intelligence (AI) to gain advantages in operational excellence, employee engagement and cost efficiency. According to PwC, 80% of chief executives reported clear efficiency gains from AI, and in more than one in ten of the affected firms both revenue and profitability increased as a result of the technology.
However, AI also introduces risks: without appropriate AI governance — the frameworks for directing and overseeing AI systems — those risks can produce business trust erosion, regulatory noncompliance, financial and reputational damage, and even trigger crisis situations.
What issues does PwC identify?
PwC notes many organizations deploy AI solutions in silos or develop them in isolated pockets, often lacking visibility into which applications employees are using. As a result, a unified governance system is frequently missing, and the ways AI is used can diverge from organizational intent and rules.
These gaps typically lead to several missed steps, including:
- consistent, uniform assessment of risks across individual applications and the entire AI portfolio,
- role-based AI knowledge for employees, and
- effective coordination among key teams responsible for AI risk management — such as data, security and compliance functions.
When these conditions are absent, an organization effectively operates blind, and AI incidents can occur unpreparedly, with unpredictable consequences.
PwC's recommendations
PwC supports organizations with its Responsible AI Insights knowledge base and a new Trust in AI expert article series that offers practical guidance. The series helps leaders to:
- establish a comprehensive AI governance framework that oversees diverse AI initiatives, including detecting unauthorized AI use,
- develop AI risk management and governance processes tailored to their specific circumstances, and
- ensure AI use is ethical, sustainable and delivers real business value.
PwC emphasizes that AI governance is not only about legal and ethical compliance: good governance also contributes to competitiveness. Organizations with sound governance can make AI a growth engine; without it, AI can resemble an unmoored ship that generates costs and complicates daily operations.
Conclusion
PwC's experts advise organizations to adopt a systemic approach to AI promptly: unified governance, role-based training and cross-functional coordination are necessary to realize AI's benefits while keeping its risks manageable.
Editor’s note: About PwC: PwC’s technology-forward, people-centered network employs more than 370,000 people across 149 countries. © 2025 PwC. All rights reserved.
