Broad adoption of artificial intelligence (AI) continues to accelerate, with 82% of global enterprises reporting a positive impact on their organizations, but data protection and errors remain the top challenges, according to Gallagher’s third annual Artificial Intelligence Adoption and Risk Survey.
The survey of 1,200 businesses globally highlights the rapid integration of AI into their operations, with 63% fully operating or implementing AI in parts of their operations, up from 45% in 2025, with a focus on IT operations, customer-facing capabilities and analytics.
Confidence in the financial potential of the technology is strong, with 83% of respondents believing AI will drive future revenue growth.
The majority of businesses (93%) are confident in their understanding of AI risks, rating their knowledge as “fairly good” or “very good.”
Despite the widespread adoption of AI, the survey revealed some challenges. More than half of respondents cited skills gaps and recruitment difficulties, and 46% have appointed an AI ethics officer to balance technical and ethical considerations.
Nearly two-thirds of organizations (63%) say they are actively measuring ROI, although they estimate it will take an average of 28 months to realize tangible returns.
The survey highlights that AI errors, misinformation and hallucinations remain a major problem. These challenges top the list of threats posed by AI adoption (57%), as do legal and reputational risks from AI misuse (56%) and data protection and privacy violations (55%).
The survey also revealed the importance of maintaining the human element in AI, particularly in areas such as technology, including personal responsibility, governance and training.
The survey also revealed the importance of maintaining the human element in AI technologies, including personal responsibility, governance and training.
While full adoption of the technology may still be years away for some businesses, many organizations are making steady progress.
Gallagher Global Chief Digital Officer Steve Rhee pointed out that the most important thing is customer experience.
“This survey complements what we’re seeing among our customers. At Gallagher, our AI adoption journey is about more than just implementing cutting-edge technology, it’s about empowering our people and focusing on customer needs,” said Rhee.
Adding: “Over the past few years, we have continued to invest in data, analytics and digital workforce skills development to ensure our teams are equipped to deliver the best outcomes and solutions for clients in a rapidly evolving environment.”
