AI governance lags as finance teams accelerate adoption in UK

By Puja Sharma

Nearly half of UK finance leaders say their AI governance is falling short

Research from Soldo reveals growing tension between rapid AI adoption and UK businesses’ ability to maintain oversight and control

• 67% of UK employees frequently bend the rules or find loopholes to access company money, while 27% admit to purchasing AI tools at work without approval in the last year
• Only 27% of UK finance leaders say AI usage and purchasing is fully governed across their organisation with clear policies and controls

– AI spending and adoption are accelerating across UK businesses. However, many organisations are still developing the governance structures needed to manage it effectively, according to new research from spend management provider, Soldo.

The research found that while 80% of UK finance leaders cite AI investment as important to achieving their organisation’s goals, only 27% say AI usage and purchasing are fully governed with clear policies and controls. Instead, almost half (49%) admit their organisation has gaps in its AI governance strategy, while nearly a quarter (23%) say minimal to no governance measures are currently in place.

The findings also point to growing tensions between governance processes and employee demand for speed and productivity at work. Many UK employees expressed frustration with company-approved tools and systems. Nearly two thirds (60%) say the AI tools permitted by their organisation are difficult to use, while 67% say they are expected to use them without proper support.

Meanwhile, over a quarter (27%) of UK employees admit they have purchased AI tools for work without approval in the last year, pointing to the growing challenge of shadow AI as employees increasingly purchase tools outside formal company oversight.

Issues also arise with financial processes. While 92% of UK employees say AI has improved their productivity at work, 27% cite missed business opportunities due to slow access to company funds. At the same time, more than two-thirds (67%) say they frequently bend rules or find loopholes to access company money, suggesting employees are increasingly willing to bypass processes they perceive as slowing down productivity.

Sacha Hermann, Chief Financial Officer at Soldo, said, “These findings highlight the growing reality that AI adoption is increasingly happening outside of formal business processes. Employees want tools that help them move quickly and work more efficiently, but many businesses are still trying to balance innovation with governance and control.

“The risk for organisations is losing visibility over how AI tools are being used and purchased across the business. Companies need governance approaches that support productivity and agility, without pushing employees towards workarounds or unauthorised spending.

“Without that balance, businesses risk creating fragmented systems, hidden costs, duplicate tools, unclear ownership, unmanaged spend and greater compliance challenges as AI adoption continues to accelerate.”

Dr Naeema Pasha, workplace productivity and AI expert at Henley Business School, added, productivity cannot be evaluated purely through AI adoption. When systems and processes create friction, employees end up carrying a ‘cognitive tax’, which is the additional mental effort created by unclear or difficult processes that make it harder to work effectively. When that friction builds, it’s only natural for people to look for faster routes to get work done, and as the research shows, this can lead to Shadow AI and workarounds developing outside of formal business oversight. This makes Shadow AI a human behaviour issue as much as a technology or governance one.”