Expanding Use of AI Agents in Businesses Outpaces Governance and Responsibility

Companies Grapple with AI Agents and Governance Issues

In a rapidly evolving technological landscape, artificial intelligence (AI) is becoming increasingly integral to business processes. A recent report by Redwood Software has shed light on a staggering 77% of organizations experiencing adverse effects due to the inadequate governance of AI agents. The report, titled "Enterprise Benchmarks in AI and Agentic Orchestration 2026," is based on insights from 300 executives and industry professionals and underscores critical gaps in the integration, accountability, and monitoring of AI technologies.

The Growing Adoption of AI

Evidence suggests that while firms are swiftly adopting AI solutions, particularly those powered by agents, they struggle to implement the necessary frameworks for reliable governance. The survey conducted by Redwood Software highlights a disconnect between the rapid deployment of AI technology and the cohesive systems needed to govern it effectively. With AI agent applications rising by an impressive 89% in the past year, many businesses find themselves caught between innovation and operational efficiency.

Consequences of Ungoverned AI Agents

The findings reveal that the repercussions of ungoverned AI include unexpected cloud costs, operational disruptions, and compliance issues. A stark 82% of respondents believe that existing systems, rather than strategic deficiencies, are the primary impediments to successfully scaling AI technologies. Furthermore, only 42% of participants asserted they have an effective infrastructure for connecting AI agents with legacy systems, suggesting a significant gap in readiness for scalable AI integration.

Responsibility Fragmentation

Perhaps most alarming, the accountability surrounding AI governance is fragmented, with responsibilities diffused across IT operations, dedicated AI teams, and software engineering departments. A coherent strategy for overseeing AI agent operations appears to be lacking, leaving businesses vulnerable to operational risks as they delegate critical tasks to AI without sufficient oversight.

While 54% of respondents felt prepared to orchestrate AI within their existing systems, only a mere 42% reported having a centralized registry for deployed agents. This suggests a dire need for improved visibility and monitoring of AI activities. The report emphasizes that a comprehensive understanding of agent performance and behavior is crucial, particularly when clients entrust AI with pivotal business functions.

Looking Ahead: Building Trust in AI

The report highlights a decisive need for enhanced observability since 62% of survey participants indicated a desire for better real-time visibility into AI agent operations. Additionally, 58% viewed the ability to seamlessly integrate AI with legacy systems as vital for fostering trust in agent-based applications.

Charles Crouchman, Product Director at Redwood, articulated a poignant truth about the challenges organizations face: "Demonstration is the easy part. The real test begins when an AI agent interacts with a production system, a financial transaction, or a customer engagement. At this junction, governance mustn't merely rely on policy documents or post-incident reviews. Instead, it should be embedded into the very processes, setting limits for agents and integrating human judgment before a potential issue arises."

Accessing the Full Report

The exhaustive report, "Enterprise Benchmarks in AI and Agentic Orchestration 2026," provides detailed insights into AI maturity, deployment, governance, and return on investment. It serves as an essential resource for businesses seeking to evaluate their status and improve their AI governance strategies.

About Redwood Software

Redwood Software stands as the leading orchestration platform for autonomous enterprises. With over three decades of experience, it empowers organizations to intelligently automate and orchestrate essential business processes across intricate ERP systems and emerging AI technologies. Trusted by more than 50% of Fortune 50 companies, Redwood is dedicated to liberating human potential and driving transformative growth. For more information, visit Redwood's website or follow them on LinkedIn at @Redwood Software.