Canadian companies falling behind on AI governance
Canadian firms have a significant gap between their strategic artificial intelligence ambitions and their operational governance, according to PwC Canada’s “Trust in AI” report.
The report found that most companies (71%) expect positive financial from trustworthy AI, viewing it as a value driver rather than a cost centre.
Although firms recognize AI as a foundational technology, many are operating in an environment of partial implementation – lacking dedicated governance structures and rigorous AI lifecycle controls. Even though 72% of organizations say responsible AI is a top priority, 36% still have no dedicated governance function.
“Establishing strong AI governance is about building trust with customers and partners while future-proofing the business. Trust isn’t a constraint on innovation; it is the condition that makes innovation possible at scale,” said Jordan Prokopy, national data trust and privacy practice leader, PwC Canada.
PwC says the companies that embed rigorous controls throughout the AI lifecycle and upskill their staff will be best positioned to realize the full value of their AI spending.
“To build lasting trust, businesses need to go beyond policy and put in place consistent monitoring and independent testing. This discipline gives leaders the transparency they need to manage risks proactively and ensures AI systems stay reliable as they evolve,” said Brenda Vethanayagam, partner, risk services and AI trust, PwC Canada.
Actions that Canadian organizations can take to build trusted AI include:
1) Elevating responsible AI to the C-suite and board to ensure governance structures match the strategic importance of AI
2) Conducting a comprehensive inventory of all AI systems to know their purpose, owners, and data sources
3) Moving beyond partial implementation by setting timelines to complete capabilities in risk tiering, model validation, and continuous testing
4) Closing the skills gap by upskilling risk, compliance, privacy, security, and data governance teams
