Thinking & Perspectives
AI Strategy Insights
Practical perspectives on AI strategy, agentic systems architecture, and governance — from the advisory practice at Imagine Works.
AI Hallucination: What Enterprise Leaders Need to Understand in 2026
AI hallucination — when a language model produces confident, plausible output that is simply false — is now a measured enterprise risk, not a research curiosity. Vectara's leaderboard puts frontier model hallucination rates between 3% and 15% on a controlled summarisation task; Stanford's legal-AI study found purpose-built tools hallucinating on 17–33% of queries. Here is what leaders should know, and what to do about it.
Shadow AI: Why One-in-Five Enterprises Now Has a Governance Problem They Cannot See
Shadow AI — employees using unsanctioned generative tools at work — has moved from anecdote to material risk. IBM's 2025 breach data put a number on it: organisations with high shadow AI usage paid $670,000 more per breach, and only 37% of organisations have any policy to detect it. Here's what enterprise leaders should do about it.
How to Design an AI Incident Response Process
AI incidents are not IT incidents. When a system produces a wrong, discriminatory, or harmful output systematically, the incident may have been occurring for weeks before anyone notices, the harm distributed across thousands of individuals, and the cause difficult to isolate. AI incident response requires its own framework.
AI Procurement: What to Demand in a Vendor's Governance Documentation
When organisations procure traditional software, the governance due diligence checklist is mature. AI procurement is different — the systems are not deterministic, their outputs depend on training data and deployment context the buyer does not control, and the consequences of inadequate due diligence are higher. Here is what to ask.
What Is an AI Model Card — and Why Every Enterprise AI System Needs One
Every AI system has a design history: what data it was trained on, what it was optimised for, where it performs well and where it does not. Almost none of this is documented in a way that the people operating or affected by the system can access. A model card changes that.
General-Purpose AI Models and the EU AI Act: What the August 2025 Obligations Mean
The EU AI Act's General-Purpose AI provisions became enforceable in August 2025. For organisations using foundation model APIs, fine-tuning GPAI models, or building products on large language models, the obligations are direct and material. Here is what changed and what it requires.