Governance Materiality Index (GMI)

Overview

The Governance Materiality Index (GMI) answers a different question than AGR. While AGR measures governance quality, GMI measures governance relevance: how much does AI governance matter to this specific company? A regional bank deploying a single chatbot has low AI governance materiality. A frontier model developer or a healthcare company deploying clinical AI has high materiality. GMI quantifies this difference.

Score Range

Range	Materiality Level	Implication
80-100	Critical	AI governance is existential to business continuity. Board-level priority.
60-79	High	AI governance materially affects risk profile and regulatory exposure.
40-59	Moderate	AI governance is relevant but not dominant in the company’s risk landscape.
20-39	Low	Limited AI deployment. Governance requirements are emerging, not urgent.
1-19	Minimal	AI is not material to current operations. Monitoring-only posture appropriate.

Inputs

GMI is calculated from:

AI deployment intensity: Number and criticality of AI systems in production
Sector AI materiality: Industry-level AI adoption and risk patterns
Revenue dependency: Percentage of revenue tied to AI-enabled products or services
Regulatory exposure: Jurisdictional requirements (EU AI Act high-risk classification, etc.)
Workforce AI impact: Degree of workforce transformation driven by AI
Public scrutiny: Media and stakeholder attention to the company’s AI activities

How GMI Relates to AGR

GMI contextualizes AGR. A company with:

High GMI + Low AGR = Critical governance gap. Immediate risk.
High GMI + High AGR = Well-governed in a high-stakes environment.
Low GMI + Low AGR = Low priority. Monitor for materiality changes.
Low GMI + High AGR = Over-invested in governance relative to exposure (rare but possible).

API Access

GMI is included in every ratings API response alongside AGR:

{
  "ticker": "AAPL",
  "agr": { "grade": "BBB", "score": 72.4 },
  "gmi": { "score": 78, "level": "High" }
}

See the API Reference for details.

​Overview

​Score Range

​Inputs

​How GMI Relates to AGR

​API Access

Overview

Score Range

Inputs

How GMI Relates to AGR

API Access