AI risk disclosures in enterprises spike, report finds

Material risk of artificial intelligence was disclosed by over 70% of public firms on the S&P 500 this year, compared with only 12% in 2023, with the surge indicating accelerated AI adoption, reports Cybersecurity Dive. The most commonly cited AI deployment risk factor was reputational risk, followed by cybersecurity risk, according to a report from The Conference Board. Legal and regulatory challenges also remain prominent, as governments accelerate efforts to establish AI-related security and compliance while balancing innovation needs. While AI has been integrated into core operations such as customer engagement, product design, credit modeling, and logistics, many companies have yet to establish comprehensive governance frameworks. Findings from PwC's 2025 Annual Corporate Directors Survey revealed that only 35% of corporate boards have formally integrated AI oversight into their governance structures. "Directors recognize that AI brings both strategic opportunity and fiduciary risk, and many are starting to consider how to strengthen governance through regular education, clear oversight structures, and responsible-use frameworks," said PwC Governance Insights Center Leader Ray Garcia.