How AI Use Can Increase Failure To Prevent Fraud Risk

This article was originally published on May 11, 2026 in the FT Adviser.

Companies increasingly rely on artificial intelligence (AI) to streamline workflows, improve efficiency, and perform complex tasks. To date, much commentary on AI risk has focused on external threats to companies (for example, cyber intrusion and third-party misuse). Less attention has been paid to the UK corporate criminal enforcement risk that may be increased by a company’s own deployment of AI.

This article considers how the use of AI might increase companies’ exposure to criminal liability for the failure to prevent fraud offence under the Economic Crime and Corporate Transparency Act 2023 (ECCTA).

Failure to Prevent Fraud