The Generative AI in Risk and Compliance 2025 report by Parker & Lawrence explores how risk management is central to unlocking the true value of generative AI. Based on extensive primary research—including a survey of 224 senior risk and compliance professionals in the UK and US, analysis of 620 GenAI applications, and interviews with eight industry experts—the report highlights both opportunities and challenges in deploying AI responsibly.
A key finding is the ROI paradox: while low-risk AI use cases often fail to deliver meaningful returns, firms hesitate to embrace higher-risk applications due to concerns about fraud, cybersecurity, and regulatory exposure. This tension underscores the need for elite risk management as the only sustainable path forward.
The report situates AI adoption within the broader context of an AI arms race, where competitive pressures risk overshadowing safety considerations. It emphasizes that effective governance must evolve in parallel with rapid innovation, and that risk management should be seen not as a barrier but as a strategic enabler.
Insights include barriers to adoption such as data quality, cost concerns, and integration challenges. Yet, the research also identifies transformative use cases where GenAI enhances compliance, fraud detection, and operational resilience. Technology leaders are spotlighted for their ability to deliver solutions that balance efficiency with safety.
Ultimately, the report argues that AI safety is AI progress: by embedding risk and compliance into strategy, firms can confidently pursue innovation while safeguarding stakeholders. Risk management, far from slowing AI, is positioned as the engine that enables sustainable ROI and long-term value creation.
