New Index: Reputation Warning Issued for Companies Using AI
(Madrid, Spain) This quarter’s Reputation Risk Index comes with a major development: Artificial Intelligence has become a clear and present danger to public confidence for many corporations. For the fourth time in less than two years the transformative technology ranked as the most serious threat on the list, prompting an unprecedented advisory. In issuing a Reputation Warning, the Index is recommending business leaders take immediate and decisive action to mitigate potential long-term brand damage. The message was clear from the head of the Global Risk Advisory Council of over 150 former ministers and preeminent public affairs leaders who contribute to the report.
“As AI is rapidly deployed for productivity gains, we have also seen diminishing public trust in the technology, elevating the need for businesses to take measures to protect their brands,” said Isabel Guzman, Chair of the Council. “In this environment, AI use or overuse can quickly damage a company’s standing with customers, investors, or other key stakeholders, making it essential for companies to deploy preventive tactics now.”
The Index outlines several potential mitigation steps. These include avoiding and removing artificially created content from public-facing platforms, along with publicly making a commitment to human-generated content. Companies are also advised to find ways to reintegrate humans into automated customer service processes where frustration is highest. Finally, they should create informational infrastructure around how to verify content that purports to come from the corporation or its executives.
The emerging threat of AI to brands was first identified by the Index at the very beginning of 2025. At the time, it made headlines around the world, from Bloomberg to the Guardian and Euronews. Those concerns centered around accelerated adoption of the technology driving consumers and the public into more artificial relationships, which inherently create more potential vulnerabilities for companies. The issue again topped the Index twice more over the last eighteen months, aligning with concerns that included privacy, safety, and worker displacement.
The results of this report were first released during a pre-briefing to financial industry leaders at the British Business Bank in London on Monday and formally presented during an event today in Madrid. Several more roundtables on the findings are planned in the coming weeks around the globe and the Council plans to publish an interim update on the evolution of the threat before its next formal results are unveiled in January. This and past indexes are available online at www.reputationrisk.org.
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