AI policy, responsible AI

New research from Infosys Knowledge Institute (IKI), the research arm of Infosys, unveiled critical insights into the state of Responsible AI (RAI) implementation across enterprises, particularly with the advent of agentic AI.

The report, Responsible Enterprise AI in the Agentic Era, revealed that while 78 per cent of companies see RAI as a business growth driver, only two per cent have adequate RAI controls in place to safeguard against reputational risk and financial loss.

The report looked at the effects of risks from poorly implemented AI, such as privacy violations, ethical violations, bias or discrimination, regulatory non-compliance, inaccurate or harmful predictions, among others, and found that 77 per cent of organisations reported financial loss, and 53 per cent of organisations have suffered reputational impact from such AI-related incidents.

Furthermore, respondents believe that its capability remains patchy and inefficient for most enterprises. Apart from the two per cent of companies that met the full RAI standards, only 15 per cent met three-quarters of the standards.

Despite 78 per cent of senior leaders seeing RAI as aiding their revenue growth and 83 per cent say that future AI regulations would boost, rather than inhibit, the number of future AI initiatives, they are also saying that on average, they believe they are underinvesting in RAI by 30 per cent.

It is noted that the companies that have met the full standards of RAI are found to have experienced 39 per cent lower financial losses and 18 per cent lower severity from AI incidents.

Balakrishna DR, EVP – global services head, AI and industry verticals at Infosys said: “We have seen firsthand how delivering more value from enterprise AI use cases, would require enterprises to first establish a responsible foundation built on trust, risk mitigation, data governance, and sustainability. This also means emphasising ethical, unbiased, safe, and transparent model development. To realise the promise of this technology in the agentic AI future, leaders should strategically focus on platform and product-centric enablement, and proactive vigilance of their data estate. Companies should not discount the important role a centralised RAI office plays as enterprise AI scales, and new regulations come into force.”

Jeff Kavanaugh, head of the Infosys Knowledge Institute at Infosys, added: “Today, enterprises are navigating a complex landscape where AI’s promise of growth is accompanied by significant operational and ethical risks. Our research clearly shows that while many are recognising the importance of Responsible AI, there’s a substantial gap in practical implementation. Companies that prioritise robust, embedded RAI safeguards will not only mitigate risks and potentially reduce financial losses but also unlock new revenue streams and thrive as we transition into the transformative agentic AI era.”

User Image
Karl Aguilar
Karl Aguilar is a journalist for Inside Small Business who has contributed to cultivating the publication's growth and reputation among Australia's small-business community. He has also worked with other organisations and enterprises in their content strategy and has contributed feature articles and thinkpieces for a number of online and print publications, including a contribution for a book on digital entrepreneurship. Karl is involved in a number of causes, particularly for the preservation and promotion of cultural and historical heritage and for the campaign for constitutional reform in the Philippines. He is also an avid trivia game player who has managed to appear on television as a game show contestant.

Recommended