Misusing artificial intelligence (AI) has emerged as the foremost threat to corporate reputations, surpassing other significant risks such as child welfare concerns and geopolitical conflicts, according to a new survey. The findings are detailed in the latest edition of the quarterly Reputation Risk Index, released on Tuesday.
The survey, conducted by the Global Risk Advisory Council, polled over 150 public affairs leaders. It highlighted that while AI's potential for organizational efficiency is recognized, its rapid deployment has also led to diminishing public trust and accelerated safety and data concerns, including hacks, fraud, strained privacy protections, workforce disruption, and lawsuits linking AI products to real-world harm.
Isabel Casillas Guzman, chair of the Global Risk Advisory Council, stated that AI has become a "clear and present danger to public confidence for many corporations." She advised business leaders to "take immediate and decisive action to mitigate potential long-term brand damage" by deploying preventive tactics to protect their brands from damage to their standing with customers, investors, and other stakeholders.
Respondents also ranked actions or accusations of putting children at risk of mental, emotional, or physical harm, and infringing on individuals' sensitive information highly. Unethical or illegal behavior for strategic advantage and poor strategic or operational decisions that reduce financial or public standing completed the top five risks.
The Reputation Risk Index noted that previous editions had identified supply chain issues and geopolitical factors related to the US-Israel war on Iran as leading risks. However, respondents indicated these anxieties have eased, with the conflict slipping from the top tier of concerns.
This development follows recent warnings from tech figures about the potential existential threats posed by AI in the wrong hands. Separately, US President Donald Trump's administration named Jay Clayton, director of national intelligence, as the new AI czar, tasked with coordinating the federal government's engagement with consumers, public interest groups, and AI tech companies.
