91% Adoption, But 46% Name Hallucinations as the #2 Barrier

The 2026 Secretariat and ACEDS Artificial Intelligence Report (published July 23, based on a broad industry survey) found 91% of respondents used generative AI in the past year — a decisive shift from experimentation to everyday use. The barriers have shifted accordingly: data privacy and confidentiality remain the leading concern (57%), but hallucinations rose sharply to become the second-highest barrier (46%), overtaking cost (40%). 64% of respondents expect their organization's AI investment to increase over the next 12 months. For mid-sized firm leaders, the hallucination barrier's rise signals a maturing conversation — firms are past the "should we use AI?" debate and now managing the "how do we know the output is reliable?" operational question. Governance and verification infrastructure, not just tool selection, are the determinants of whether AI investment translates into durable practice change.