The short version

IBM warns that most UK executives say they control AI, but few can prove it to auditors. The gap could expose firms to compliance risk and costly fixes.

What happened

IBM’s Digital Sovereignty Index found that 87 per cent of UK executives say they have AI under control. Only 27 per cent can demonstrate that control to an auditor, according to IBM.

The background

IBM says most British firms have faced at least one digital‑sovereignty challenge in the past three years. Debbie Lawrence, group head of data strategy at LSEG, warned that without proactive evidence collection, companies will scramble when an issue arises.

What it means for owners and operators

Owners may face higher audit costs if they cannot evidence AI controls. Operators must build documentation and monitoring into AI workflows now, not after a breach. Executives should treat data as a crown‑jewel asset and ensure it is authenticated and auditable.

The numbers

87 per cent of executives claim AI is under control. Only 27 per cent can prove that control to an auditor.

Our take

Analysis by Infercline · The counter-view

Most UK firms overstate AI readiness; without audit‑ready evidence they face costly compliance gaps.

What to do in your business tomorrow

  1. Map every AI model in use to the business process it supports and note the data it consumes.
  2. Create a simple audit checklist that records who can verify each model’s outputs and data sources.
  3. Store key evidence, logs, data lineage and validation reports, in a central, searchable repository.

Related coverage

Sources

  • cityam.com: IBM sounds alarm over AI governance at British firms
  • City A.M.: IBM sounds alarm over AI governance at British firms