Many businesses using artificial intelligence (AI) are facing serious issues with the technology, according to a recent report by Infosys. The study, which surveyed over 1,500 business leaders and interviewed more than 40 senior executives from countries like Australia, France, Germany, the UK, the US, and New Zealand, reveals that a staggering 95% of these executives have encountered at least one type of AI-related problem.
On average, these leaders reported experiencing about 2.5 different kinds of incidents. The most common issues included privacy violations and systemic failures, which were reported by 33% of respondents. Additionally, 32% faced inaccurate or harmful predictions, while another 32% pointed to ethical violations. A lack of clear explanations for AI decisions was also a concern for 30% of those surveyed.
The consequences of these incidents have been significant. About 77% of respondents reported financial losses, which included lost revenue and higher costs. Over half indicated that the damage affected their reputation, and nearly half faced legal repercussions, including fines and settlements. Alarmingly, 72% of participants described the damage as at least substantial, with 39% labeling it "extremely severe."
Despite these challenges, the report highlights that many AI initiatives within organizations are still in their early stages. While executives acknowledge the seriousness of the issues, the scope of AI deployments is often limited, which may lessen the overall impact.
The report also points out a troubling trend: only 2% of organizations have proper Responsible AI (RAI) controls in place to guard against these risks. This finding is based on Infosys’ best practices for RAI, known as the RAISE BAR, which emphasizes trust, risk management, data governance, and sustainability. Out of the 1,500 surveyed, only 25 organizations met these standards.
However, there is some optimism. About 78% of the respondents believe that RAI can contribute to revenue growth, and 83% anticipate that upcoming AI regulations will encourage more AI initiatives. Jeff Kavanaugh, Head of Infosys Knowledge Institute, noted the gap between recognizing the importance of Responsible AI and actually implementing it. He emphasized that companies focusing on strong RAI measures can not only reduce risks and financial losses but also open new revenue opportunities.
As businesses continue to integrate AI into their operations, addressing these challenges will be crucial for their success and sustainability in the future.