AI Magazine February 2026 Issue 35 | Page 136

same point. The regulation establishes fines reaching 7 % of global annual turnover for non-compliance with provisions covering prohibited practices.
Research from McKinsey indicates that while 88 % of organisations report using AI in at least one business function, board oversight has not kept pace. Only 39 % of Fortune 100 companies disclosed any form of board oversight of AI as of August 2025, according to the firm’ s assessment, while a global survey of directors found that 66 % report their boards have limited to no knowledge or experience with AI.
SAS warns early AI adopters face credibility crisis The company’ s experts identify a particular risk for organisations that prioritised speed over responsible implementation. Luis Flynn, Market Strategist for Applied AI, Open Source Software and ModelOps at SAS, draws a parallel to previous technology failures.“ Remember when the log4J breach rocked the open source community?” Luis says.“ In 2026, mature, early AI adopters that bypassed attempts to measure and incorporate AI responsibly will be exposed.”
Luis predicts these exposures will result in significant credibility losses as what he terms“ commoditised AI slop” becomes visible to wider audiences. The warning suggests that organisations currently using AI systems without adequate governance frameworks may face public scrutiny that damages their market position and stakeholder trust.
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