By Rebekah Carter
Publication Date: 2025-11-26 09:00:00
Executives everywhere are chasing the promise of automation. Customer service teams, marketing departments, even banks and airlines are turning to AI to save money and move faster. On paper it looks like progress. In practice, it opens the door to AI risks that most executives underestimate. The most serious of these is AI reputation risk.
A system that mishandles a refund or sends an incomprehensible promotion doesn’t just result in poor interaction; it makes headlines. When mistakes are spread across social media, the damage spreads faster than a brand can control.
The current record is full of warnings. Google’s value was reduced by more than $100 billion after a Bard demo failed. KFC Germany was forced to issue a global apology after its automated campaign promoted chicken on the anniversary of Kristallnacht. Australia’s Commonwealth Bank was forced to abandon AI-related job cuts as public anger boiled over.
Consumers are not patient. Research…
