Executive Summary
E&C leaders are done debating whether or how to use AI. We’re executing. 77% of E&C teams now hold a significant or coordinating role in AI governance, and 57% have employees trained in AI. Crucially, governance is the unlock for outcomes. When guardrails are codified into approvals, contracts, and monitoring, compliance can safely reap the rewards and implement AI with defensible oversight.
These things alone don’t sufficiently manage AI risk, however. Most AI enters the organization via vendors, and while 84% of E&C teams own third-party risk, only 15% include AI provisions in third-party codes and just 14% have audited even half of their vendors.
This report closes that gap with insights into the AI regulatory landscape and governance framework examples, plus RACIs, model inventories, impact reviews, and HITL triggers. And since E&C leaders want less theory and more proof, we are also sharing peer stories from Ethisphere's BELA companies Verisk, Cargill, and Palo Alto Networks to showcase their literacy-first adoption and RAG-enabled workflows that shift time from drafting to judgment.