FTI Survey: Companies Slowing AI Adoption Over Security And Trust Concerns

(MENAFN- PRovoke) LONDON - Large companies are slowing enterprise AI adoption as cybersecurity threats, regulatory uncertainty and concerns over trust reshape public sentiment on artificial intelligence, according to new research from FTI Consulting.

The report, AI's Second Act, Where Safety, Risk and Trust Collide, was released ahead of Dublin's International AI Summit in mid-October, amid community resistance to data center construction, numerous stories about“rogue” AI agents, and the prospect of new regulatory measures.

The consulting firm polled 1,600 senior business decision-makers across seven markets, and found that 60% of large companies have slowed, paused or pulled back a planned AI deployment in the past year because of reputational, regulatory or trust concerns.

According to FTI, the findings suggest businesses are not abandoning AI, but are entering a more cautious phase in which AI risk management, responsible AI governance and internal confidence will determine the pace of adoption.

“AI has moved from hype to hard reality,” said Jon Priestley, a senior managing director in FTI Consulting's strategic communications segment.“Companies still see enormous opportunity, but enterprise AI adoption is now being shaped by cybersecurity risk, regulatory uncertainty and a growing trust gap inside organisations.”

“AI's Second Act will be defined not just by who moves fastest, but by who can deploy it responsibly. Businesses will look to the Dublin AI Summit for practical guidance on cyber resilience, governance, disclosure, liability and the organisational change needed to make AI work safely at scale.”

Among the key findings:

AI deployment is slowing: 60% of large companies have slowed, paused or pulled back a planned AI deployment in the past year. Cyber risk is now the top concern: 60% cite cybersecurity-data privacy and security breaches-among their biggest AI-related risks for the year ahead. Shadow AI is also emerging as a major risk: 54% say employee use of unapproved AI tools is a major worry for 2027. AI governance is still immature: Only 17% of companies have governance frameworks that are more than two years old.

Cybersecurity is the biggest factor creating caution. As AI becomes more embedded in daily operations, companies must manage both approved systems and the growing use of unapproved tools outside established controls.

Regulatory uncertainty is adding to that caution. More than four in five (81%) of respondents say unclear AI rules have created material issues for their business, including higher risk aversion and pressure to slow adoption. At the same time, AI governance remains immature: 41% of companies' frameworks were established less than a year ago and only 17% are more than two years old.

The research also highlights a widening credibility gap inside organisations. Senior executives are more likely than middle managers to report strong returns from AI, while managers are less likely to say public AI claims match internal reality.“That divide matters because managers are often responsible for turning AI strategy into day-to-day operating change,” the firm says.

Against this backdrop of caution, companies are responding by redirecting investment from experimentation to risk control. Planned AI investment s being directed toward cyber and information security at 47%, followed by internal communications and change management at 35%, employee training and certification at 30%, AI governance headcount at 27% and crisis management at 26%.

“The pattern suggests companies are moving beyond experimentation and building the infrastructure needed to manage AI responsibly at scale,” the firm says.

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