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Trustworthy AI Is Emerging As A Business Advantage, Not Just A Governance Issue

Artificial intelligence may be transforming enterprise operations at unprecedented speed, but a new study from SAS and IDC suggests that the organisations seeing the strongest returns are not simply those deploying more AI. They are the ones governing it better.

The second annual Data and AI Impact Report, titled The New Economics Of Trust, found that organisations applying what the researchers describe as trustworthy AI practices were 15 times more likely to report strong or high returns on investment from their AI initiatives.

Governance Is Now A Performance Driver

According to the study, enterprises with the strongest governance, data quality and auditability practices reported at least twice the return on investment from AI deployments compared with other organisations. While SAS noted that these leaders still represent a relatively small segment of the market, their advantage is clear: trust is becoming a source of competitive differentiation.

At the other end of the spectrum, fewer than one in 20 organisations classified as laggards in trustworthy AI reported similarly strong returns.

“When AI works, it’s incredibly impactful,” said SAS chief technology officer Bryan Harris. “However, it is well documented that state-of-the-art agents can have error rates that exceed 25 per cent on complex tasks, which is unacceptable in high-stakes decision-making.”

Harris added that organisations must embed domain expertise into agentic workflows while keeping people at the centre of governance and oversight. “Organisations that do this successfully will close the trust gap and gain a competitive advantage in the market with AI,” he said.

Why Trust Is Becoming A Scaling Requirement

IDC vice president Chris Marshall said the challenge is intensifying as AI systems become more autonomous. “As AI becomes more autonomous, organisations face a new challenge: maintaining confidence in systems people don’t fully understand,” he said.

“Our findings show that stronger oversight, explainability, accountability and data foundations are becoming prerequisites for scaling AI successfully,” Marshall added.

The report found that employees frequently override AI-generated recommendations, with a lack of explanation emerging as the leading reason. Researchers said users were increasingly unwilling to rely on systems when they could not determine whether the output was correct or understand how the model reached its conclusion.

That trust deficit becomes more costly as AI systems take on greater autonomy. Manual corrections can slow workflows, reduce productivity and erode profitability, even when the underlying model is technically capable of making accurate recommendations.

According to the study, 97.2 per cent of users override AI-generated recommendations in at least some cases. The most common reason, regardless of whether employees believed the output was correct, was that the system could not explain its reasoning.

Autonomy Increases Both Opportunity And Risk

The report also found that trust declines as systems become more autonomous, falling from 76 per cent for generative AI to 66 per cent for agentic AI. That drop matters because organisations are increasingly deploying AI in settings where decisions are more consequential and less transparent.

SAS and IDC said the findings point to a widening performance gap between organisations that prioritise trustworthy AI and those that do not. The difference, they argued, is not necessarily the technology itself, but how it is managed and governed.

Organisations investing in trustworthy AI measures were 15 times more likely to report strong or high returns on investment, with 62 per cent doing so compared with 4 per cent among organisations without such practices. Those with the strongest trustworthy AI capabilities also reported 1.85 times greater gains across 13 business outcomes, including revenue growth, cost savings and customer experience.

The study further found that 85 per cent of AI leaders with strong trustworthy AI practices were increasing investment in the area by more than 10 per cent in 2026, a signal that the gap may widen further.

Data Foundations Remain A Bottleneck

Beyond governance, the research highlighted weak or outdated data foundations as another major barrier to adoption. SAS and IDC said many organisations are still deploying AI on underdeveloped data infrastructure, limiting their ability to deliver the transparency and explainability required for effective oversight.

Only 17.5 per cent of enterprises were found to have a fully optimised data infrastructure mature enough to meet the demands of agentic AI. Organisations with such a foundation were four times more likely to expect strong returns from AI projects and six times more likely to require data quality and explainability controls designed to build trust.

The study was based on a global survey of 2,699 decision-makers with knowledge of or influence over their organisations’ data and AI programmes across 28 countries and four industries: banking, insurance, life sciences and the public sector.

Industry Leaders Are Treating Governance Differently

In banking, 85 per cent of AI leaders had established AI governance frameworks, compared with just 29 per cent of organisations classified as laggards. The report said leading banks are increasingly viewing AI governance as both a competitive and operational issue, not merely a compliance obligation.

In the public sector, 41 per cent of leaders said they were increasing investment in trustworthy AI by more than 20 per cent in the coming year, one of the highest rates across the survey.

Life sciences showed another important pattern: 23 per cent of organisations had scaled AI across their entire companies, the highest proportion among the four sectors studied.

What The Report Means By Trustworthy AI

SAS and IDC define trustworthy AI as artificial intelligence designed to be reliable, fair, secure and compliant with regulatory requirements, while also being able to explain how it reached a decision.

The report argues that users and decision-makers across an organisation should be able to hold an AI system to a predetermined chain of accountability when its output is incorrect or absent. In practice, that means AI cannot be treated as a black box if it is expected to support high-stakes decisions at scale.

The companies assessed organisations across five dimensions of trustworthy AI and scored them out of 100. Those with an average score of at least 80 were classified as trustworthy AI leaders.

The five dimensions were data quality and governance, model governance and oversight, explainability and fairness, responsible AI policy, and audit and accountability.

The message from the report is unmistakable: in the next phase of AI adoption, the winners may not be those experimenting the fastest, but those building the strongest foundations of trust.

Europe’s Deadly Summer Heat Exposed The Cost Of A Warming Continent

Europe experienced its deadliest summer for heat-related deaths on record in 2026, with an estimated 24,400 excess deaths linked to extreme temperatures across 30 countries. Researchers estimate that human-induced climate change was responsible for around 32,000 of the deaths attributed to heat in the study’s broader analysis, accounting for 65% of the total.

The findings highlight the growing public-health consequences of global warming, largely driven by fossil fuel use, as extreme heat becomes more frequent and severe.

A Summer Of Dangerous Heat

Between June and August, heatwaves pushed temperatures in Western Europe to an average of 2.9°C above the 1991–2020 norm, with some days reaching 12°C above average. Nearly a third of estimated heat-related deaths occurred during a particularly intense heatwave between 17 June and 1 July.

“These numbers are a stark reminder that our hotter, more extreme summers are having an increasingly severe impact on public health,” said Dr Clair Barnes, a researcher at Imperial College London and co-author of the study.

The estimated toll exceeded previous peaks of around 29,000 deaths in summer 2022 and 28,000 in 2003 across the region studied.

How Researchers Estimated The Toll

Researchers modelled the relationship between temperature and mortality across 854 urban areas in the EU, UK, Norway and Switzerland, covering around 40% of the population in the 30 countries studied.

The analysis incorporated temperature records, age, socioeconomic conditions, environmental factors and access to healthcare. By comparing actual temperatures with those expected without human-induced warming, the team estimated the additional deaths attributable to climate change.

Final official mortality figures for summer 2026 are not yet available in many countries, and heat-related deaths are often underreported because their effects can be difficult to identify directly.

Older People Face The Greatest Risk

People aged 85 and over accounted for roughly half of the estimated deaths. However, the impact extended across age groups, with around 800 excess deaths among adults aged 20–44 and approximately 6,000 among people under 65.

Southern Europe experienced the highest mortality burden, reflecting hotter temperatures and other vulnerabilities, including air pollution, limited green space and unequal access to healthcare and heat-alert systems.

Italy, France And Spain Record Highest Toll

Italy recorded an estimated 13,303 heat-related excess deaths, followed by France with 7,268 and Spain with 6,824. Germany recorded around 6,340, while the UK saw an estimated 4,354 deaths.

In the UK, the heat also placed significant pressure on healthcare services. Andrew Hartle, Professor of Practice of Anaesthesia at Imperial College Healthcare, said demand during the summer resembled that of a severe winter virus season.

Cities Urged To Strengthen Heat Protection

Researchers say cities can reduce the risks through climate shelters, external shading and building retrofits, alongside measures to help residents avoid exposure during the hottest hours. Checking on vulnerable people, staying hydrated and following heat alerts are also important.

The researchers stress that adaptation must go hand in hand with reducing fossil fuel use to limit further warming. The findings underline that extreme heat is already a major public-health threat across Europe, with thousands of lives at risk each summer.

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