Gaps in escalation, audit readiness, and legal leadership emerge as AI use expands across business operations.

NEW YORK, May 14, 2026 /PRNewswire/ — A new benchmark survey from the American Arbitration Association (AAA^®), based on responses from 500 senior legal and executive leaders at large U.S. and Canadian organizations, finds that many organizations are struggling to turn AI governance policies into systems that work in practice.

Survey participants represented organizations across sectors, including financial services, technology, healthcare, energy, manufacturing, professional services, and legal services, and 70% of these organizations had revenue of $1 billion or more.

The AAA-ICDR Institute™ released the report analyzing the survey responses, “From Principles to Practice: A Benchmark Study in AI Governance.” The report finds that, while AI governance frameworks are being built, policies are being written, and ownership is being assigned, a significant gap remains between governance on paper and governance in practice. Although 87% of respondents say their organizations have some form of AI governance in place, only 22% say those systems are operating effectively. The findings point to inconsistencies in three primary areas: escalation, audit readiness, and legal involvement.

Among the key findings from the survey:

Many organizations lack clear processes for AI issues. Only 33% say they have defined escalation pathways when AI systems misbehave, leaving organizations without consistent ways to manage risk in real time.
Audit readiness remains limited. Just 22% say they are very confident they could produce evidence of governance decisions for regulators or auditors if required.
Legal and compliance teams are not consistently involved. While 80% say IT or technology teams contribute to AI governance, only 35% report involvement from legal and compliance teams.
CEO involvement appears to be limited. While CEOs cite accountability clarity as a top governance need, only 21% report holding final AI deployment authority, suggesting many may be delegating governance rather than setting the mandate directly.

“Across industries, AI is without question an integral part of business operations,” said Bridget McCormack, AAA president and CEO. “Yet, our survey shows that many organizations still have much to do so governance systems can manage AI responsibly in practice. Governance is a cross-functional business imperative, not just a technical or legal concern. Without effective collaboration and oversight, organizations expose themselves to regulatory scrutiny, reputational harm, and loss of trust. Proper AI governance is essential to managing risk and using AI with confidence.”

The report also finds that organizations with more extensive AI deployments tend to have stronger governance practices and greater confidence in their ability to demonstrate decisions under scrutiny. It further observes that effective AI governance requires practical systems that make oversight, accountability, and decision-making part of the full AI lifecycle.

The survey, is part of AAA’s broader effort to educate the business and legal communities, establish standards for responsible AI use in dispute resolution, and support organizations as they build governance frameworks that work in practice. Through its research, resources, and thought leadership, the AAA is working to advance AI adoption grounded in trust, accountability, and practical risk management.

The survey was conducted by iResearch on behalf of the American Arbitration Association. To read the full report, visit: https://feature.adr.org/AAA-AI-Governance-Survey

About the American Arbitration Association
The American Arbitration Association is the largest provider of alternative dispute resolution (ADR) services in the world. Marking its centennial in 2026, the American Arbitration Association has transformed how legal issues are resolved for better since 1926, turning disputes worldwide into opportunities for understanding and progress. A not-for-profit organization, the American Arbitration Association’s mission is to deliver ADR services with integrity, transparency, and innovation. For more information, visit www.adr.org/.

About the AAA-ICDR Institute™
The AAA-ICDR Institute is the thought leadership and R&D arm of the AAA, focused on enhancing equity, efficiency, and accessibility in dispute resolution. Through initiatives that promote access to justice, court-connected ADR, the use of artificial intelligence in ADR, and fairness in arbitration, the Institute collaborates with courts, academic institutions, nonprofits, and technology partners to develop equitable, data-driven solutions to shape the future of ADR.

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