A recent survey revealed that the misuse of artificial intelligence (AI) is perceived as the top reputational risk for companies, surpassing other serious threats like harming children or the implications of geopolitical conflicts such as the US-Israel war on Iran. This insight was highlighted in the latest edition of the Reputation Risk Index, which was published by the Global Risk Advisory Council. The council, along with the Washington DC-based public affairs firm Global Situation Room, surveyed over 150 public affairs leaders across five continents, including former heads of state and senior executives, bringing to light growing concerns over the impact of AI on corporate reputation.
The concern about AI misuse is not new—it has been consistently identified as a major worry since the survey began in April 2025. However, what stands out in the latest findings is the council's recommendation for businesses to take immediate, decisive actions to mitigate potential long-term brand damage due to AI. The use and overuse of AI technology are seen as significant threats to public confidence in corporations, demanding urgent preventive measures to maintain trust among customers, investors, and other key stakeholders.
The survey respondents recognized AI’s capability to enhance organizational efficiency but simultaneously flagged it as a catalyst for increasing safety and data concerns. Issues such as hacks, fraud, privacy breaches, disruptions in the workforce, and legal challenges linking AI to real-world damage were noted. These problems highlight the double-edged nature of AI, capable of both significant contributions to productivity and serious risks to ethical, legal, and operational frameworks within organizations.
In response to these challenges, the Global Situation Room advised companies to scale back on AI-generated content and rely more on human-driven customer service to enhance trust and reliability in their operations. This strategy underlines a broader need for a balanced approach to AI implementation, one that maximizes benefits while minimizing risks to reputation and legal standing.
The survey also detailed other pressing reputational threats to companies. These include accusations of endangering children’s mental, emotional, or physical well-being, violations of privacy through improper handling of sensitive data, unethical or illegal practices aimed at gaining strategic advantages or profits, and poor strategic or operational decisions impacting financial or public standing.
Previously, geopolitical tensions, specifically the ongoing conflict initiated by the Trump administration in Iran, dominated concerns about reputation risks. However, these have since diminished in urgency, despite the unresolved nature of the conflict, suggesting a possible adaptation or resignation among global business leaders regarding prolonged geopolitical crises.
Two days prior to the release of the survey, President Trump appointed a new AI czar, the Director of National Intelligence, Jay Clayton, reflecting the heightened attention the U.S. government is placing on AI governance. Clayton, who previously informed federal lawmakers about the game-changing yet potentially threatening nature of AI, will now coordinate federal efforts interfacing with various stakeholders to navigate the complexities of AI development and regulation.
The findings and recommendations of the Reputation Risk Index underscore the nuanced and evolving landscape of risks that modern corporations face in an era increasingly dominated by advanced technologies like AI. Companies are urged to proactively address these risks by refining their AI strategies and practices. In doing so, they not only protect their reputations but also contribute to the broader goal of ensuring that AI technologies are used responsibly and ethically in society.
Read the full post on theguardian.com
