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Manila Times Business

IBM Study: Eight in Ten EMEA Enterprises Escalate AI Incidents to Board or C-Suite as AI Agents Test Governance

80% of surveyed executives in EMEA say an AI-related incident reached their board or C-suite in the past year, with only 40% changing AI governance policy or frameworks in response.75% of respondents expect AI agents to have some level of autonomy with respect to decisions by 2027, yet only 37% say their governance is designed to scale with agentic AI deployment.When surveyed organizations want to deploy AI faster than governance and compliance frameworks are prepared for, nearly 60 percent (56%

Context & Analysis

As companies move from chatbots to AI agents that can draft contracts, route transactions, update records, or contact customers without a human approving every step, the risk shifts from bad advice to bad action. That is why enterprise leaders are increasingly asking who owns the outcome when an autonomous system makes a mistake. In the Philippines, this question lands on familiar institutional ground: boards accountable under SEC corporate governance expectations, banks and insurers supervised by the BSP for technology and outsourcing risk, data controllers governed by the Data Privacy Act, and consumer-facing firms exposed to DTI complaints and NPC inquiries when personal information is mishandled.

For Philippine businesses, the issue is not whether AI will be adopted; it is whether adoption outpaces controls. Many firms are using generative tools for customer service, finance back offices, legal review, and marketing long before they have clear policies on data access, model testing, vendor accountability, audit trails, and human override. Agentic systems make those gaps more visible because they can act across workflows. A bank may face issues if an AI agent approves a loan step or accesses sensitive customer records without proper segregation of duties. An e-commerce seller may create liability if an automated assistant makes inaccurate product claims or mishandles personal data. The lesson is that AI governance should be treated like any other operational risk: documented, tested, monitored, and reported to the board.

What to watch next is whether regulators and industry groups push for clearer expectations around AI incident reporting, model risk management, and vendor oversight. The NPC may focus on privacy notices and data minimization when firms deploy agents that process personal information at scale. The BSP may examine how banks document AI-driven decisions, especially where credit, payments, or customer service are involved. For investors, the signal is simple: companies that can explain how their AI systems were tested, who can stop them, and what happens after an error will be better positioned to scale. In a market still building trust in digital services, governance is becoming part of the product.

Analysis by IJE Software — original commentary on the story above.

This is an excerpt. Read the full article at the original source:

Source: manilatimes.net

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