AI is accelerating value and exposure in UK Financial Services & Insurance.

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Almost half of organisations report a negative consequence from GenAI

AI doesn’t create most governance issues – it reveals them instantly. Surfacing whatever your organisation can already access, including over-retained content, inconsistently applied sensitivity labels and orphaned repositories

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Gartner predicted…

Gartner predicted 30% of generative AI projects would be abandoned after a “Proof of Concept” by the end of 2025 due to poor data quality, inadequate risk controls, escalating costs or unclear value

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Of data is typically redundant, obsolete and trivial

Data Discovery and Information Governance projects have repeatedly shown large proportions of corporate information to be ROT. This undermines AI initiatives and increases risk by reducing the quality of AI outputs.

Why AI adoption becomes a risk issue

AI expands the exposure surface

Generative AI can introduce risks spanning over sharing, accuracy failures, cyber risk, IP leakage and reputational damage – and those risks are already being experienced by many organisations.

Configured Governance ≠ Operationalised Governance

Many firms have governance tooling and policies in place, but controls often don’t run end‑to‑end across legacy content and hybrid estates. AI quickly exposes where classification, retention, and access controls are inconsistent.

Regulation is moving from principles to demonstrable obligations

The EU AI Act establishes a risk-based framework and introduces obligations for higher‑risk AI systems, plus requirements for general-purpose AI (documentation, transparency and more, depending on systemic risk).

Three foundations for good AI governance

In the UK, the Financial Conduct Authority (FCA) emphasises safe and responsible adoption with scrutiny on the systems and processes firms have in place. This increases the need for defensible governance.

A practical approach comes down to three foundations:

  1. Policy rooted in regulatory reality and business strategy
  2. Risk-based classification of AI use cases – aligned to the EU AI Act categories
  3. An AI Register to provide visibility, accountability and evidence of control
“79% of leaders say their company needs AI to stay competitive, yet 60% worry their organisation lacks a plan and vision to implement it”

Microsoft & LinkedIn 2024 Work Trend Index

Pathways to level-up AI outcomes

Pros: Executive accountability; clear guardrails; audit defensibility.
Cons: Risks becoming “paper governance” if not operationalised.

Pros: Proportionate controls; faster approvals; regulatory alignment.
Cons: Requires ongoing maintenance and a clear intake workflow.

Pros: Single source of truth; reporting; accountability.
Cons: Degrades if a manual process; must connect to operational workflows.

Pros: Reduces AI and Copilot exposure risk; improves defensibility and resilience.
Cons: Legacy remediation requires effort and sustained ownership.

Pros: Early detection of risky usage; supports continuous compliance.
Cons: Needs risk-based tuning and enablement to avoid workaround behaviour.

Reduce AI risk without slowing innovation

Reach out and request an AI governance risk briefing.

Need Support?

Informotion’s local experts keep your information platforms running smoothly—whether you rely on Content Manager, EncompaaS, or adjacent Microsoft workloads. We provide responsive, SLA‑aligned assistance via our support desk, backed by proactive maintenance routines that reduce downtime, plus managed escalation to product vendors when required. Packages can be tailored to fill skills and capacity gaps, help your team stay compliant, and extend to after‑hours coverage when you need it.

Speak with our team about tailored data solutions.

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