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AI adoption faces hurdles in legacy systems and governance
As artificial intelligence transitions from experimentation to core infrastructure, organizations are facing significant operational and regulatory hurdles. A report from GFT Technologies highlights that 90% of companies are concerned that AI investment is outpacing realized business value. Furthermore, 95% of organizations report that legacy technology systems delay AI deployment, with 84% having canceled AI projects due to these technical limitations.
Governance and security have become central to AI adoption. In the Asia-Pacific region, Singapore has introduced a Model AI Governance Framework for Agentic AI, while South Korea is preparing the AI Basic Act for 2026 to mandate risk assessments. In the financial sector, the focus is shifting from model capability to the ability to audit and trust autonomous agents.
Operational challenges also include the rising cost of AI, leading to the launch of the Tokenomics Foundation by the Linux Foundation to standardize the measurement of AI consumption and value. Additionally, the shift toward on-device AI is expanding the corporate attack surface, moving security risks from cloud APIs to physical mobile hardware.
Entities
AI Basic Act · Android Studio · Christopher Radich · CommBank · GFT Technologies · Lagos · Linux Foundation · Microsoft · Model AI Governance Framework · Nscale · Nvidia · Rockwell Automation
Claims
What the coverage asserts, and how many sources carry each claim.
- [○ 1 SOURCE] The 2026 conference theme is ‘Artificial Intelligence (AI), Power & Accountability: The New Architecture of Corporate Governance’. nairametrics.com
- [○ 1 SOURCE] Physical AI utilizes sensors and cameras to interact with the physical world, unlike generative AI which operates in digital environments.
- [○ 1 SOURCE] The conference will examine how AI affects corporate oversight, risk, and regulatory expectations. nairametrics.com
- [○ 1 SOURCE] SCGN will host its 2026 Annual Corporate Governance Conference on October 8, 2026, in Lagos, Nigeria. nairametrics.com
- [○ 1 SOURCE] Mapping end-to-end business processes allows for greater value than traditional task-based automation. www.govloop.com
- [○ 1 SOURCE] Errors in Physical AI systems can lead to equipment damage, operational disruption, or personal injury.
- [○ 1 SOURCE] 84% of organizations have canceled at least one AI pilot or project due to legacy system limitations. forbesliberia.com
- [○ 1 SOURCE] The number of small businesses investing in AI tools more than doubled in FY26 compared to FY25 in Australia. www.smh.com.au
- [○ 1 SOURCE] Singapore launched a new Model AI Governance Framework (MGF) specifically for Agentic AI. www.frontier-enterprise.com
- [○ 1 SOURCE] South Korea’s AI Basic Act, effective January 2026, will mandate risk assessments and human oversight for high-impact systems. www.frontier-enterprise.com
- [○ 1 SOURCE] The Linux Foundation launched the Tokenomics Foundation in August 2026 to develop vendor-neutral methods for measuring AI costs and value. highways.today
- [○ 1 SOURCE] 95% of surveyed organizations reported that legacy systems delay their ability to deploy and scale AI. forbesliberia.com