We’ve always loved a gold rush. From Silicon Valley’s startup boom to Wall Street’s crypto craze, we’ve outpaced the rules designed to contain innovation. Now, a new study by the British Standards Institution (BSI) warns that the same pattern is repeating with artificial intelligence (AI) only this time, the consequences could run far deeper. According to BSI’s research, many US companies are “sleepwalking into a governance crisis”, failing to put in place the safeguards needed to manage AI responsibly, protect employees, and uphold ethical standards.
The findings come from an analysis of more than 100 multinational annual reports and a survey of 850 senior leaders across industries.
Automation First, People Later
Only 30% of US organizations have dedicated learning and development programs for AI. Even more concerning, over half of US business leaders believe their teams already have the skills to handle AI effectively. That confidence, says BSI’s CEO Susan Taylor Martin, might be misplaced. “Overconfidence and inconsistently applied safeguards create a future where avoidable failures are increasingly likely,” she cautions.
The research found that only 17.5% of US businesses currently have a formal AI governance program, compared with 24% globally. In other words, most American companies lack a structured way to manage AI’s ethical, legal, and operational risks.
Without governance, organizations face blind spots in areas like data provenance knowing where their training data comes from, whether it’s biased, and how it’s being used. Only 26% of US leaders said they know what data underpins their AI systems. That’s like driving a self-driving car without checking what’s under the hood.
Equally worrying, just 25% of companies restrict staff from using unauthorized AI tools. Shadow AI employees experimenting with ChatGPT-like models without oversight has become an invisible frontier of risk. It’s fast, convenient, and untraceable.
The Cost of Complacency
This overconfidence is understandable. AI promises efficiency, cost-cutting, and competitive edge. But as BSI’s findings highlight, technology without accountability is a ticking time bomb. Ethical breaches, data leaks, reputational damage, or even lawsuits could arise from seemingly minor oversights.
The irony? Many of these risks are avoidable with the right guardrails. Formal governance frameworks, transparent data policies, and staff training can reduce the probability of disaster.
The US has no nationwide AI regulation yet, but that’s no excuse for inaction. In fact, proactive self-governance could become a major competitive advantage. Companies that can demonstrate ethical AI practices are likely to earn more trust from consumers, employees, and investors alike.
