Misusing artificial intelligence now poses the greatest threat to corporate reputations, overtaking geopolitical conflicts and child safety scandals, according to a new industry survey. The finding signals a sharp shift in how public affairs leaders view brand vulnerability.

The quarterly Reputation Risk Index, released on Tuesday, drew on responses from more than 150 public affairs professionals worldwide. The Washington DC-based Global Situation Room compiled the data from former heads of state, government ministers, and senior executives across more than 20 countries on five continents.

Last July, supply chain disruptions and the US-Israel war on Iran dominated the risk list. Those anxieties have cooled since the fighting began in February, even though the conflict remains unresolved. "The geopolitical shock … hasn’t gone away, but its first, sharpest reputational blow has faded, and the conflict has slipped out of the top tier [of concerns] even as it grinds on," said Isabel Casillas Guzman, chair of the Global Risk Advisory Council.

Respondents see artificial intelligence as a powerful tool for organizational efficiency. The same group also warned that the technology accelerates safety risks, data breaches, fraud, and privacy violations. Lawsuits are increasingly tying AI products to real-world harm, straining corporate defenses. "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," Guzman added.

The reputational pressure arrives as the Trump administration moves to regulate the sector. Donald Trump recently named Jay Clayton, the director of national intelligence, as the new AI czar. Clayton previously told lawmakers that the technology acts as a gamechanger while posing a threat, prompting the council to urge firms to implement preventive measures immediately.