Advancing Responsible AI Governance Leads to Improved Business Outcomes

The latest findings from EY's Responsible AI Pulse Survey show that organizations engaging in responsible AI initiatives experience notable increases in revenue growth, employee satisfaction, and cost reduction. Around 80% of respondents reported enhancements in innovation and productivity as AI technologies reach deeper into their businesses. This trend underscores the advantages for firms that invest in structured AI governance.

Key Findings

1. Business Benefits: Companies that have adopted real-time monitoring and established governance frameworks are reaping rewards. Approximately 54% of these firms noted revenue growth, while 48% reported cost savings and 56% observed improvements in employee satisfaction. In contrast, companies with delayed AI governance strategies appear stagnant in achieving similar benefits.

2. Awareness of Risks: Almost all survey participants (99%) acknowledged facing financial losses due to AI-related risks, with 64% experiencing losses exceeding $1 million. Over 440,000 USD was the average loss reported by firms, pinpointing the necessity for more effective governance and oversight in AI practices.

3. Developing Frameworks: The survey reveals a direct correlation between responsible AI measures and better business performance. Companies with comprehensive governance systems are 34% more likely to achieve revenue growth and have a 65% higher chance of realizing cost savings.

4. Implementation of Policies: On average, businesses have implemented seven out of ten recommended measures among the survey's participants, and the majority plans to execute additional strategies. Notably, there are minimal intentions (less than 2%) to avoid implementing these essential practices.

5. Recognition of Human Resource Needs: As organizations witness the emergence of citizen developers (employees creating AI solutions independently), there arises a pressing need for businesses to address this development. Two-thirds of responding firms have recognized such initiatives, yet a mere 60% have established formal policies compatible with responsible AI principles.

6. Trends in Workforce Management: Companies that actively encourage citizen development recognize the need to evolve workforce models that integrate human-AI collaboration. About 31% consider future skills shortages a significant concern, compared to only 21% among other respondents. Furthermore, 50% of these organizations are already strategizing to manage hybrid labor models effectively.

Enhancing Control Measures

Despite the evident benefits of responsible AI adoption, the survey revealed alarming gaps in awareness amongst C-suite executives concerning AI-related risks. The average correct answer rate for selecting proper control measures stands at a mere 12%. This emphasizes the importance of educating top management about effective governance practices, especially with the growing prevalence of autonomous AI agents in workplaces.

Comments from EY Leadership

Raj Sharma, Managing Partner (Growth & Innovation), EY Global:

"Neglecting proper AI management could lead to considerable losses. Embedding responsible AI practices into the core of business operations is essential for risk mitigation and value creation. Firms that prioritize trust, innovation, and differentiation will considerably enhance their productivity and profitability in an AI-dominated economy."

Joe Depa, Global Chief Innovation Officer, EY:

"Maintaining a responsible approach to AI deployment is critical. True innovation emerges within clearly defined ethical frameworks, demanding companies pursue not just growth, but growth with integrity."

Kenji Kawakatsu, Partner in Risk Consulting, EY Japan:

"Responses from Japanese companies align with the global trend, reflecting advancements in governance and policy-making. Yet, a significant opportunity remains for implementing effective risk measures tailored to specific AI use cases."

Conclusion

As businesses navigate the landscape of AI, the findings from this survey emphasize the necessity for robust governance frameworks that mitigate risks and enhance business outcomes. Companies that adopt responsible AI strategies eagerly position themselves as leaders in innovation and performance, reaffirming the principle that ethical considerations are paramount in the technological advancement journey. The World Summit AI, held in Amsterdam in October 2025, provided a platform for further discussion on these critical findings, bridging insights between industry leaders and AI experts worldwide. The path forward must not only focus on capitalizing on AI's benefits but also ensure its development aligns with responsibility and integrity.

For the full report, visit EY Japan.