On Tuesday the Global Risk Advisory Council released the latest quarterly Reputation Risk Index, a survey that gathered responses from more than 150 public-affairs leaders. The index identified misuse of artificial intelligence as the single greatest reputational threat facing corporations, surpassing concerns about child-safety allegations and geopolitical fallout from the US-Israel conflict over Iran. The findings position AI misuse at the top of the brand-risk hierarchy for the first time.
Although AI misuse has appeared in every edition of the index since its inaugural release in April 2025, the current report adds a formal advisory urging business leaders to take immediate and decisive steps to curb long-term brand damage. The council warned that the technology now constitutes a clear and present danger to public confidence in many corporations, signalling a shift from a recurring worry to an actionable threat.
The survey draws on a pool of former heads of state, government ministers and senior executives who have been vetted for crisis-response credentials across more than 20 nations on five continents. Participants praised AI’s potential to boost organisational efficiency, yet they also flagged a suite of emerging problems, including heightened safety and data concerns, increased hacking and fraud incidents, weakened privacy safeguards, workforce disruptions and a rise in litigation linking AI products to tangible harm.
Beyond AI, the index ranked accusations of endangering children’s mental, emotional or physical wellbeing and violations of individuals’ sensitive information as the next most salient threats. Unethical or illegal tactics employed for strategic advantage or profit, as well as poor strategic or operational choices that erode financial or public standing, completed the top five reputational risks identified by respondents.
The previous July edition had highlighted supply-chain disruptions, polarising political positions and the fallout from the US-Israel war in Iran as the dominant reputational hazards. According to chairperson Guzman’s message, the acute geopolitical shock still lingers, but its sharpest reputational impact has receded, allowing the conflict to slip out of the top-tier concerns even as it remains unresolved.
In a related development, the Trump administration announced the appointment of former director of national intelligence Jay Clayton as the new AI czar. Clayton has told congressional committees that artificial intelligence is a game-changing technology but also poses a threat, while President Trump posted that the AI czar will head an entity coordinating federal engagement with consumers, public interest groups, religious organisations, critical infrastructure providers and AI firms.
The council’s advisory urges firms to treat AI misuse as an immediate brand-damage risk, recommending concrete governance frameworks, transparent communication strategies and rapid response protocols. By addressing the highlighted safety, privacy and litigation concerns, companies can aim to preserve public confidence and mitigate the long-term reputational fallout that the index warns could erode market standing.