AI is revolutionising industries, but for UK businesses, it’s also emerging as a major risk by 2025. Concerns range from job disruptions and deepfake threats to ethical challenges, prompting calls for robust controls and skilled professionals to manage these risks, according to the Chartered Institute of Internal Auditors (CIIA).
Key Points:
- AI as a Top Risk: Over half of UK companies see AI as a leading business risk for 2025.
- Deepfake Threats: 83% of respondents are concerned about deepfake attacks, which can deceive and harm organisations.
- Rapid AI Adoption: With 72% of businesses now using AI, its risks and opportunities have both increased.
- Skills Shortage: Many companies are turning to partnerships for AI expertise due to a shortage of skilled professionals.
- Ethical Concerns: Issues like data privacy and transparency are causing some businesses to approach AI with caution.
- Role of Internal Audits: Internal auditors are crucial in managing and mitigating AI-related risks.
AI’s Transformative Potential and Rising Risks:
The CIIA’s Risk in Focus report shows UK companies view AI, digital disruption, and new technologies as top concerns. Deepfakes, which use AI to create realistic fake videos or audio, are a particularly alarming threat, potentially leading to financial fraud, reputational harm, or compromised security. With scams becoming increasingly sophisticated, organisations must be vigilant.
Anne Kiem OBE, CEO of the CIIA, stresses that internal audits are essential to ensure effective cyber controls. Internal auditors can help boards confront AI risks, providing assurance that technology controls are in place amid fast-paced digital changes.
Growing AI Adoption and Skills Gap:
In 2023, AI adoption soared, with 72% of companies integrating AI, up from 50% five years earlier. Generative AI has further driven this growth, making AI central to corporate strategies. Yet, the shortage of skilled AI professionals means many companies rely on external partners to fill the gap, creating risks as they become dependent on third parties for critical functions.
Ethical and Data Concerns:
Ethical issues such as data privacy, transparency, and data governance are also top of mind. As AI becomes embedded in business processes, companies face the risk of basing decisions on inaccurate or biased information, especially with the rise of deepfakes that make it challenging to distinguish real from fake data.
Safeguarding Against AI Risks:
The CIIA advises businesses to not only incorporate AI into their strategies but also to put strong controls and oversight mechanisms in place. This includes leveraging internal auditors who play a key role in ensuring AI aligns with business goals and is used responsibly.
Conclusion:
AI’s potential is undeniable, but so are the risks. As UK businesses prepare for the future, managing deepfake threats, ethical issues, and the skills shortage will be critical. By developing responsible AI strategies and leveraging internal auditors’ expertise, companies can harness AI’s power while minimising risks.
- How is your business preparing to address the risks associated with AI?
- What measures do you believe are necessary to guard against deepfake attacks?
- Do the benefits of AI outweigh the risks for your company?
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