Definition
The degree to which a company can produce clear documentation, controls, and evidence showing how its AI systems are used, monitored, and controlled — essentially, being able to pass an audit at any time. New research found this readiness, not just how much AI a company has deployed, is what actually predicts whether AI investments pay off financially.
Why it matters
Boards evaluating AI investment often focus on adoption speed, but the evidence now shows that disciplined governance and auditability — not raw usage — is the stronger driver of real financial returns and risk reduction.