Misusing artificial intelligence has become the biggest reputational threat facing companies, according to a survey of more than 150 public affairs leaders across more than 20 countries.
The latest Reputation Risk Index, published by the Global Risk Advisory Council, found that AI-related concerns had overtaken risks including accusations of putting children at risk, privacy breaches and geopolitical instability.
The council has repeatedly identified AI misuse as a major concern since the index was launched in April 2025.
But its latest report goes further, urging businesses to take “immediate and decisive action” to limit potential damage to their brands.
Council chair Isabel Casillas Guzman said: “As AI is rapidly deployed for productivity gains, we have also seen diminishing public trust in the technology.”
She added: “In this environment, AI use or overuse can quickly damage a company’s standing with customers, investors, or other key stakeholders.”
The survey was conducted by Washington DC-based public affairs firm Global Situation Room, which publishes the index. Participants included former heads of state, government ministers and senior executives who had established experience responding to major crises.
Respondents recognised AI’s potential to improve organisational efficiency but also highlighted growing concerns over safety, data breaches, fraud, privacy, job disruption and lawsuits linking AI products to real-world harm.
The Global Situation Room said companies should consider reducing their use of AI-generated content and retaining human involvement in areas such as customer service.
Concerns about children being exposed to mental, emotional or physical harm ranked second in the latest index, followed by breaches involving sensitive personal information.
Unethical or illegal behaviour designed to gain a strategic or financial advantage ranked fourth, while poor strategic or operational decisions that damage a company’s financial or public standing completed the top five.
Geopolitical risks linked to the US-Israel war on Iran, which had ranked among the biggest concerns in the previous edition published in July, had fallen down the list.
Guzman said: “The geopolitical shock … hasn’t gone away, but its first, sharpest reputational blow has faded.”
The findings come amid increasingly stark warnings from technology leaders and researchers about AI misuse, including potential threats involving cyber-attacks and biological weapons.
They also coincide with the US government expanding its focus on AI oversight.
President Donald Trump recently appointed Director of National Intelligence Jay Clayton to lead a new taskforce coordinating the government’s engagement with the AI industry.
Clayton has previously described AI as both a “gamechanger” and a threat.
