AI adoption rose by 10% last year, going from 54% in 2023 to 64% in 2024, but more business leaders are acknowledging AI risks than in previous years. In Gallagher’s 2025 Attitudes to AI Adoption and Risk Survey, 68% of business leaders still view AI as an opportunity, but this is down from 82% a year ago. Meanwhile, 11% now see AI as a potential risk, up from only 5%. “AI has immense potential to boost efficiency, automate complex operations and enhance predictive data analysis,” said John Farley, managing director of Gallagher’s cyber liability practice. “However, emerging technology almost always brings new and unforeseen risks to those who adopt it.”
The main risks leaders are concerned with are errors and AI hallucinations (34%); an increased threat of privacy violations or data breaches (33%); and liability or legal accountability in AI misuse (31%). According to the survey, many businesses are updating their risk management frameworks and revamping their strategies to incorporate AI considerations by revising cybersecurity protocols, strengthening data privacy policies and ensuring regulatory compliance.