According to the Allianz Risk Barometer 2026, cyber incidents remain the number one business risk globally for the fifth consecutive year. However, artificial intelligence (AI) has seen a dramatic leap from tenth place last year to second place, with 32% of responses, making it a top three risk for companies of all sizes across all regions. The rapid adoption of generative and agentic AI systems is raising concerns regarding liability, governance, and system reliability. Despite these concerns, nearly half of respondents still believe AI offers more benefits than risks to their industry, indicating that AI is increasingly viewed as both a powerful strategic opportunity and a complex source of operational, legal, and reputational risk. The report suggests that AI adoption is progressing faster than the development of governance, regulation, and workforce readiness.