IBM sounds alarm over AI governance at British firms

British businesses might be sleepwalking into future compliance issues as AI governance lags behind the rollout of advanced technologies, says tech giant IBM.

Leon Butler, chief executive of IBM UK and Ireland, said businesses need to build governance into business processes from the start. “We have something called an AI operating model, which is looking at the outcome, the process, and redefining that process, and then making sure that the right data and governance follow it…[if] you build it up, that governance will follow at an overall level,” he told City AM.

This comes as the IBM Digital Sovereignty Index showed a gap in corporate AI maturity, as 87 per cent of executives claim they have AI under control, but only 27 per cent can prove it to an auditor.

Debbie Lawrence, group head of data strategy and management at London Stock Exchange Group (LSEG), stated that having the right evidence means a business will be ready when an issue arises.

“It’s all well and good having a system in place and having all the tools, but if you haven’t started to think proactively around what the evidence is that I need… it starts to become a real issue because when you have an event, you don’t have time to scramble. It has to be all at your fingertips,” she said.

Data increasing in value

The New York-listed tech giant said most British businesses have faced at least one sovereignty challenge in the past three years. “For business leaders shaping their digital sovereignty strategies, the focus must be on stronger evidence,” said Butler.

Lawrence pointed out how important data has become for businesses and the focus on authenticated data. “If I look now across the industry, more and more companies are recognising that their data is an asset,” Lawrence said.

She added: “The concept of data as an asset is going to become a really interesting discussion because I think people are going to recognise that data is valuable [and the] crown jewels [of a business].”

Lawrence stated that historical data will increase in value. “I definitely believe that certain data sets are far more valuable today than they were five years ago. Because you can mine data and you can mine the history in a way that you weren’t able to do five years ago, so suddenly the fact that you can go back and look at historical trends and patterns in a much easier, faster way makes a lot of that data more valuable,” she explained.