A new EY analysis warns that the rapid acceleration of generative AI has outpaced current global governance frameworks, creating urgent risks for businesses, governments, and society. According to the report, AI models are increasingly making autonomous decisions at scale, yet accountability, transparency, and oversight remain fragmented. EY notes that organisations adopting AI without robust controls face heightened exposure to ethical lapses, data breaches, algorithmic bias, misinformation, and regulatory non-compliance.
The paper highlights that India, now one of the world’s fastest-growing AI markets, must strengthen governance structures even as adoption surges across financial services, healthcare, retail, and public administration. EY recommends a multi-layered governance approach built around clear risk classification, explainability requirements, human oversight, model audits, and stringent data-quality controls.
The report emphasises that boards and CXOs must take responsibility for AI decision-making by embedding governance into enterprise risk frameworks. As regulations evolve—from India’s DPDP Act to emerging global AI standards—EY stresses that early compliance will offer strategic advantage. The central message: AI must be governed proactively, before its scale and autonomy make governance significantly harder.
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