The AI governance gap: why AI is moving faster than the rules meant to control it

The potential around AI in finance is tangible right now and with it comes both opportunity and risk.

Vendors are promising faster closes, automated reporting and real-time insights. Finance leaders are under pressure to modernize and keep pace with the AI revolution.

Across the mid-market, AI is being embedded into financial workflows at a pace that is outrunning the governance structures needed to make it safe.

That gap is where a new category of risk is emerging, one that for professionals working closely with finance teams are increasingly calling "black box AI." It is yet another challenge the industry needs to address head-on.

Black box AI refers to any finance deployment where outputs cannot be traced or governed. It shows up as unverifiable recommendations, automation that bypasses normal approval workflows, or analytics tools that surface a headline figure with no clear path back to the underlying transaction.

The outputs look...

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