More than half of large companies in the United States and Europe have slowed or paused their adoption of artificial intelligence (AI) technologies over concerns regarding trust, regulatory uncertainty, and cybersecurity risks, according to a recent survey of 1,600 senior executives.
The survey, conducted by consultancy FTI, found that 60 percent of respondents reported scaling back planned AI deployments in the past year. Experts from FTI describe this trend as a transition from the initial rapid uptake driven by excitement over AI’s capabilities to a more cautious and measured approach focusing on responsible implementation. Jon Priestley, a senior director at FTI, noted that this “second act” of AI adoption will be shaped by businesses’ ability to manage risks such as cybersecurity threats and a growing trust deficit within organizations.
Cybersecurity concerns emerged as the most prominent challenge, with 54 percent of executives expressing alarm about employees’ use of unapproved AI tools, which can introduce vulnerabilities. Regulatory ambiguity also contributed to corporate hesitation, with 81 percent of those surveyed reporting that unclear AI regulations have created significant issues for their operations.
The survey further highlighted a divide in confidence levels within companies: while senior decision-makers generally believed the AI tools they approved functioned well, mid-level managers—who are responsible for implementing AI strategies day-to-day—were less certain. This “credibility gap” underlines the difficulties organizations face in aligning leadership expectations with operational realities.
Respondents indicated a shift in investment priorities from experimenting with emerging AI applications toward mitigating risks associated with existing deployments. The most popular areas for additional investment included enhanced cybersecurity measures, expanded employee training, and the recruitment of personnel dedicated to AI governance and oversight.
The increasing caution among corporations comes amid ongoing debates over the broader implications of AI technology. Industry figures including Dario Amodei, chief executive of Anthropic, have called for coordinated efforts to slow the development of cutting-edge AI models, a stance supported by prominent leaders such as Sam Altman and Elon Musk. Additionally, OpenAI has postponed its planned public offering to address concerns about model safety, seeking to raise at least $30 billion in funding that would value the company at approximately $1.4 trillion.
Public figures have also voiced warnings about AI’s potential risks. King Charles, speaking at a technology summit in Scotland, urged vigilant oversight, highlighting the dual nature of AI’s power to improve lives while posing “existential dangers.” He emphasized the need for sufficient control mechanisms before the technology’s more harmful capabilities emerge.
As organizations navigate these challenges, the survey suggests that the era of unchecked enthusiasm for AI is yielding to a phase where trust, governance, and risk management will play defining roles in shaping the technology’s future adoption.