Study: Most UK firms' AI risk disclosures lack substance
A study posted on arXiv on 1 October 2026 examined 9,821 annual reports from 1,362 UK-listed companies covering 2020 to 2025, with partial 2026 data, using a two-stage classification pipeline validated against 474 human-annotated passages. Mentions of AI risk climbed from 2.8% to 41.2% of reports, AI adoption disclosure from 13.8% to 45.2%, and vendor names concentrated on a small number of big suppliers, with Microsoft the most cited. Yet only 4.3% of 2025 reports contained disclosure the author classifies as substantive; AIM-listed firms trailed the Main Market, Energy and Data Infrastructure sectors lagged, and reports describing actual harm were almost absent, numbering seven across the whole corpus. For business decision-makers this is a warning: most AI risk reporting is boilerplate. Expect investors, auditors and regulators to demand verifiable, specific statements about AI exposure and controls.