A new edition of the Reputation Risk Index, released on Tuesday, identifies misuse of artificial intelligence as the leading threat to corporate reputation, surpassing other significant concerns. The survey, conducted by the Global Risk Advisory Council and published by the Washington DC-based Global Situation Room, gathered input from former heads of state, government ministers, and senior executives from over 20 countries across five continents.
The index creators noted that while AI technology has demonstrated potential for organizational efficiency, its rapid deployment has coincided with declining public trust. The council released an advisory recommending business leaders implement immediate mitigation strategies to protect their brands from potential long-term damage. Recommended tactics include reducing or eliminating AI-generated content and returning to human-staffed customer service operations.
Respondents acknowledged AI’s efficiency benefits while expressing concerns about accelerating safety issues, data breaches, fraud, privacy violations, workforce disruption, and litigation related to AI-caused harm. Child safety concerns and privacy violations ranked as secondary threats, followed by unethical or illegal behavior used for competitive advantage and poor strategic decisions resulting in financial or reputational losses.
The index’s previous edition, released in July, had identified supply chain disruptions and divisive political positions linked to ongoing international conflicts as top reputational risks. However, respondents indicated that initial anxiety about geopolitical tensions has diminished as the conflict has persisted, with such concerns dropping out of the top tier despite the situation remaining unresolved. Council chair Isabel Casillas Guzman noted that while the geopolitical shock has not disappeared, its initial impact on corporate reputation has faded.
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