Most Firms Work With IT on AI, But Not on Governance

Why It Matters

Without coordinated AI governance, firms expose themselves to compliance, security, and operational risks that can outweigh AI’s benefits. Establishing joint oversight is essential for sustainable digital transformation and competitive advantage.

Key Takeaways

• 96% of procurement and IT teams collaborate on AI initiatives
• 54% lack joint AI governance policies, exposing risk
• 36% cite missing data‑governance as top AI adoption barrier
• 63% promote employee AI training via online courses
• 53% view CPOs and CIOs as equal technology partners

Pulse Analysis

The surge in AI adoption has pushed procurement and IT departments into unprecedented collaboration. According to the latest ProcureAbility findings, almost every organization reports some level of joint effort, reflecting a broader industry trend where technology is no longer siloed. This alignment enables faster integration of AI tools into sourcing, spend analysis, and supplier risk management, delivering the speed and insight that modern supply chains demand.

Despite the collaborative momentum, a governance vacuum persists. More than half of the surveyed firms admit they do not co‑develop AI policies, leaving critical controls—such as model validation, data privacy, and ethical use—without clear ownership. The lack of data‑governance frameworks, cited by 36% of respondents, compounds the risk, especially as AI models become more data‑intensive. Coupled with a 26% skill gap in data analytics, organizations face potential compliance breaches, biased outcomes, and operational disruptions that could erode stakeholder trust.

To bridge these gaps, companies are investing in talent development and structural changes. Sixty‑three percent are upskilling staff through online AI courses, while sixty percent embed IT or data specialists directly within procurement teams. Partnerships with technology vendors are also on the rise, providing external expertise to accelerate capability building. Notably, the perception of CPOs and CIOs as equal technology partners has climbed to 53%, indicating a strategic realignment that could standardize AI governance across the enterprise and unlock more reliable, scalable AI-driven value.