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AXA XL warns AI governance lags as AI adoption accelerates
AXA XL and S-RM say AI use has expanded quickly, citing McKinsey data showing 88% of organizations use AI in at least one business function.
AXA XL, along with cyber security consultancy S-RM, says many organizations are embedding AI into critical business processes faster than their governance, security, and incident-response capabilities can keep up. The firms argue AI risk should be treated as an enterprise resilience issue, not just a technology or compliance matter, in their report Building Resilient AI: Managing AI Risk Through Governance, Security and Resilience.
The warning is grounded in rapid adoption figures. According to McKinsey's 2026 State of AI survey, 88% of organizations report using AI in at least one business function, up from 78% the prior year, a trend AXA XL and S-RM say creates more potential entry points for cyber threats and introduces new operational, regulatory, and third-party risks.
The report highlights that wider AI access to sensitive data and decision-making processes increases exposure to multiple failure modes. It lays out five priorities for leaders, including assigning clear accountability for AI across the enterprise, tightening data protection and identity and access controls as AI becomes more autonomous, and managing AI risk across the full lifecycle from development through deployment, monitoring, and incident response.
AXA XL also emphasizes the need for stronger oversight of AI vendors and other critical third parties, and for preparing AI-related loss scenarios that may span cyber, fraud, liability, and business interruption insurance coverage at the same time. Insurance Business notes that AXA XL risk consulting head Jonathan Salter said the organizations best positioned to capture AI value will be those that understand where AI is used and build security and resilience in from the start.