Report: Only a Fraction of Risk Leaders are Prepared for GenAI Threats

A new study by Riskonnect reveals that while 93% of companies recognize the risks associated with using generative AI, only 9% feel prepared to manage these risks. The research highlights a significant gap in AI risk management, with only 17% of risk and compliance leaders formally training their organizations on the risks of generative AI. Data privacy and cyber issues, inaccurate decision-making by employees, ethical risks, and copyright and intellectual property risks are among the top concerns for companies. Additionally, the study found that 63% of companies have not simulated their worst-case scenario and only 5% feel prepared to assess and recover from unknown and unpredictable risks. However, organizations are investing more in risk management, with an increasing number of companies hiring chief risk officers and allocating more funding for risk management technology.