Wholesaler Guide
The real risks of ungoverned AI in business
ISOQAR’s Kirsty Wakefi eld shares how regulation and oversight can ensure AI is developed and deployed safely, ethically and in line with business priorities and wider societal values.
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eaders across the tech industry have repeatedly warned about the dangers of AI and the scale of its capabilities. AI continues to amaze us, and many organisations are racing to adopt and work alongside it. Its sub-optimal, yet increasingly human-like intelligence, along with its power to transform traditionally linear technologies into limitless opportunities raises an important question: how far can it go before it slips beyond our control?
Rapid adoption across every sector In business, AI is now being developed and deployed across virtually every sector. Businesses are leveraging everything from customer service chatbots to automation tools and analytics models to streamline processes, open new revenue avenues and gain competitive advantage.
24 | electrical wholesalerJune 2026
Despite this rapid uptake, recent research shows that while nearly 93% of UK organisations now use AI in some form, just 7% have fully embedded governance frameworks to manage its risks. This means the vast majority of companies may already be operating without the controls regulators are soon to demand.
Exacerbating existing issues Although AI can create new problems, it is more likely to amplify existing weaknesses within an organisation. Issues like inconsistent data management, gaps in compliance and regulation or operational weaknesses such as discrepant workfl ows can quickly amplify, and become systematic issues that are much harder to resolve. With proper governance in place, businesses can conduct regular audits as part of an AI compliance process to help identify potential
risks early, and address them before the implementation of new AI technologies.
Who controls the AI tool? Rarely before have organisations turned to a software or tool that prompts us to question who really controls who. AI and Machine Learning tools possess boundless capabilities that require a deep understanding of their intended purpose, abilities and functions. Machine Learning (ML) tools in particular, continue to adapt and learn automatically without direct programming and without the need for direct human intervention. In the absence of a clear organisational understanding of how these systems operate, AI tools can become unpredictable, and even with well-intended use, businesses risk deploying tools
ewnews.co.uk
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