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Gaps in governance in AI key risk for business growth in 2024 and beyond: KPMG

Nicole Lim
Nicole Lim • 2 min read
Gaps in governance in AI key risk for business growth in 2024 and beyond: KPMG
The top risks forecast report by KPMG says businesses must take AI strategy and policy into their own hands. Photo: Bloomberg
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The gaps in governance when dealing with artificial intelligence (AI) is a key risk for business growth in 2024 and beyond, finds KPMG in its top risks forecast report for 2024. 

Governance surveillance mechanisms have not been able to keep pace with AI innovations, which has surged in investments and adoption in the last 10 years, giving rise to more cybersecurity threats and reputational risks, according to the report. 

Businesses must therefore take AI strategy and policies into their own hands, and not expect harmonised global regulatory frameworks in the context of a multipolar world, says KPMG. 

“From an internal perspective, businesses should feel responsible for ensuring the right infrastructure and strategies are in place to embrace AI in a responsible, human-focused way,” the report notes. 

This refers to a focus on building trust and transparency among existing employees that are uncertain or sceptical of AI’s impact on their livelihood, as well as consumers that prioritise personal data security and privacy in the market. 

KPMG’s report also cites trade policy restrictions and vulnerability calling for operational resilience as two other key risks threatening business growth in 2024. 

See also: Microsoft, Apple avoid OpenAI’s board as US scrutiny grows

This refers to governments reorienting their economic relationships along ideological lines, and some countries and territories becoming less willing to cooperate on matters of global peace and security. 

As such, businesses and business leaders should conduct dynamic risk assessments, visualise their supply chain exposure, forge a trusted AI integration path, and pre-empt disruptive regulation by driving sustainable innovation, as some big themed ways to tackle the challenges of today.

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