REPORT
The AI Governance Gap: 5 key findings
Based on insights from 154 general counsel across the UK, France and Germany, LEGALFLY’s latest report highlights the growing gap between AI adoption and control—and what legal and compliance teams must do to close it.
1
AI is everywhere, but governance is immature
90% of organisations use AI in daily operations. Yet only 18% have a fully implemented governance framework, exposing firms to growing legal, data and reputational risks.
2
Leadership supports AI, but strategy is lacking
C-suite enthusiasm is high, but only 15 percent have good understanding of AI tools used and have governance frameworks in place. Without top-level ownership, policies remain disconnected from how AI is actually used.
3
Most policies miss critical safeguards
While many organisations have AI policies, they often stop at ethics and privacy. Only a third address model behaviour, vendor risk or approval processes.
4
Shadow AI is a growing risk
Informal, unapproved AI use is common. 24% of firms admit they only have limited understanding of what AI tools are being used—making oversight and accountability impossible.
5
Legal teams want clarity, not more frameworks
The call from GCs is clear: fewer principles, more practice. Teams need concrete definitions, real-world examples, and tools that embed governance into daily work.
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