Technology is moving extremely fast, and a recent Clyde & Co survey of global business leaders has found that associated risks are weighing heavily.
According to the law firm’s latest Corporate Risk Radar, 86% of leaders—CEOs, CFOs, COOs, general counsel, and board members—rate technological risk as “high impact.” This is up from 46% just last year, marking the largest year-on-year increase of any category in the research.
“All businesses are trying to adapt to artificial intelligence (AI) as quickly as they can, but the speed at which it changes makes that a big challenge,” said Tim Crockford, partner at Clyde & Co, in a statement. “When you ask whether organizations have a mature AI governance framework in place, some will say yes today, but that will be out of date by tomorrow.
“That’s why the governance framework that comes with AI needs to keep up with the evolution of the technology, and organizations need to understand when it’s being used, how it’s being used, and have steps in place to prevent misuse.”
Operationally, 68% of leaders said transformational delivery is a high risk, and 57% said there is pressure to prove a return on tech investments.
AI is more than an information technology risk since the reliance on third-party providers increases as AI is integrated into businesses, creating additional exposure points and potential for cascading failures. Of the 700 senior decision-makers from 11 industries surveyed across the world, 72% cited technology implementation and systems integrations as a one of the greatest operational challenges. A little more than half of respondents said technology adoption, including AI, will pose a significant risk to organizations in the next year.
Results of the survey indicated there is another risk that has moved to top-of-mind. Geopolitical risks are front and center, with 72% of respondents this year saying it is having a direct commercial impact, versus about 50% saying the same in 2025.
As one general counsel said in the survey, geopolitical issues were once “monitored in the background,” but today it is “directly shaping investor sentiment, buyer behavior, and confidence.”
Geopolitical risk is affecting everything from the technology supply chain to regulatory compliance. Leaders said the most significant geopolitical factors are conflict escalation and instability (60%) and trade restrictions and sanctions (57%). Four of five organizations said geopolitical shifts are affecting where and how they operate.
“We are living in a world where you can wake up in the morning and face a complete shift in the geopolitical situation,” said Claude & Co partner Jan Spittka. “Organizations need to reduce their dependency on providers and suppliers in any one region. But above all, it is important first to accept this reality, and then to try to become more agile in dealing with it.”
Topics
InsurTech
Trends
Data Driven
Artificial Intelligence
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