IBM Study: Three In Four UAE Executives Report AI Incidents Reaching Leadership As Agent Autonomy Grows

(MENAFN- Mid-East Info) New UAE findings show governance and accountability under growing pressure as AI agents move further into enterprise operations

75% of UAE executives say an AI-related incident reached board or C-suite attention in the past 12 months, with 49% changing AI governance policy or frameworks in response 78% expect AI agents to have some level of autonomy towards decisions by 2027, while 41% say their governance is designed to scale with agentic AI deployment. When organizations want to deploy AI faster than governance and compliance frameworks for the intended uses of AI are ready for, 60% continue within agreed risk limits while governance adapts; almost a third (30%) delay deployment until governance is ready. Only 39% have a formal, board-reviewed quantification of the financial risk created by gaps in their AI governance

DUBAI, United Arab Emirates, October, 2026 - New research by IBM (NYSE: IBM) finds that AI-related incidents are already reaching boardrooms in UAE organizations, but governance capabilities and risk accountability are under pressure as AI adoption advances. Three in four (75%) UAE executives surveyed say an AI-related incident - including an agent failure, data exposure, AI-driven decision error or AI security breach - reached board or C-suite attention in the past 12 months. Among respondents reporting an escalated incident, 49% changed their AI governance policy or framework and 40% changed AI investment or deployment plans. When the pace of deploying AI outstrips governance and compliance readiness, 60% of UAE respondents report continuing within agreed risk limits while governance adapts. By comparison, 30% delay deployment until governance is ready. The research suggests governance policies will be tested further as AI agents take on more autonomous work. 38% of UAE respondents say agentic AI is already in production across one or more functions, including 13% that have embedded it across enterprise operations. 78% expect AI agents to have some level of autonomy towards decisions by 2027. While 41% say their governance is designed to scale with agentic AI deployment, 35% say current frameworks can cope but will need strengthening. “As AI agents take on more decisions and actions, governance has to become part of how AI operates, not an afterthought,” said Shukri Eid, Vice President and General Manager of IBM Gulf, Levant, and Pakistan.“For organizations in the UAE, that means creating clear accountability, stronger oversight and controls that can scale with adoption. Building that trust into AI from the start will be critical to turning innovation into long-term business value, while being aware of the risks involved.” Accountability and liability gap: AI risk is formally governed at board level in nearly all UAE organizations surveyed, yet the research found no clear consensus on accountability for adverse outcomes from autonomous AI agents. The Chief Risk Officer or Chief Compliance Officer is the most commonly cited owner at 21%, followed by shared responsibility between named C-suite executives at 17% and the CIO or CTO at 15%. Respondents' views on legal liability when an AI system causes significant harm are also divided. 26% say AI liability is too complex and context-specific for a general answer, 19% say an adequate regulatory framework does not yet exist and 16% believe liability should be shared proportionally between the organization deploying the agent and the technology vendor. To manage increasingly autonomous AI agents making decisions at each step by 2027, UAE executives expect to need formal legal or contractual frameworks defining AI vendor liability (37%), cross-jurisdictional governance structures (36%) and the ability to immediately halt agent activity across the enterprise (36%). Other key findings include:

Financial risk measurement remains uneven. 39% have a formal, board-reviewed quantification of the financial risk created by gaps in AI governance, while 38% have some financial estimates that are not comprehensive or regularly reviewed. Third-party AI risk: Nearly half (49%) of UAE respondents acknowledge gaps or limitations in how their governance framework covers AI systems used by vendors, technology partners and supply-chain participants. Only 29% continuously monitor third-party AI risk and 16% require independent assurance or certification. National AI strategy shapes governance investment: 59% cite national AI strategy requirements as a primary driver of AI governance investment in the UAE, followed by international regulatory exposure at 42% and sector regulatory requirements at 38%.

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