Companies Build AI Oversight but Struggle With Operational Readiness

While seven in 10 organizations have established formal AI oversight structures, only 14% say they are fully prepared to deploy AI capabilities, according to Sedgwick’s 2026 global risks forecast based on a survey of Fortune 500 executives.

The research, which focuses on a number of risk trends, reveals widespread adoption of AI governance frameworks but limited operational capability.

Seventy percent of respondents report having cross-functional AI oversight committees in place, and 67% are actively upgrading their systems. However, the technical infrastructure and organizational readiness necessary to implement these frameworks safely lags significantly behind.

This 56-percentage-point gap between committee formation and infrastructure readiness indicates that governance advances primarily on paper while production capabilities remain underdeveloped, according to the report. Less than half of organizations—48%—have AI governance guardrails in progress, and 31% acknowledge struggling to keep pace with AI preparation requirements. Only 41% have established dedicated AI governance teams, while a mere 12% rely on external consultants for guidance.

Organizational Barriers Outweigh Technical Challenges

Organizations surveyed identify the rapid pace of AI change as their primary implementation challenge, followed by difficulties executing governance frameworks and managing data privacy complexities. Regulatory uncertainty and change management issues tie as significant hurdles facing companies attempting to operationalize AI capabilities.

These barriers are predominantly organizational and process-oriented rather than purely technical in nature.

“AI isn’t just another technology trend; it’s a seismic shift rewriting the rules of risk and claims. It’s creating tension everywhere: between risk and opportunity, humans and machines, safety and security,” Sedgwick said.

Success depends on synchronizing people, policy and technology simultaneously—a coordination challenge that requires sustained attention across multiple organizational functions including governance, data privacy and cybersecurity infrastructure.

View the full global risks study here. &