The report urges investment in robust AI governance to close the gap between rapid AI adoption and responsible readiness.
As agentic AI adoption accelerates, most enterprises remain unprepared to manage its potential risks, according to a new report by Infosys Knowledge Institute (IKI). The study reveals that while 78% of business leaders see Responsible AI (RAI) as a driver of growth, only 2% of organizations meet the highest standards of RAI readiness.
The report, Responsible Enterprise AI in the Agentic Era, surveyed 1,500 executives and interviewed 40 senior decision-makers across six countries, including Australia, France, Germany, the UK, the US, and New Zealand. It found that 95% of enterprises experienced AI-related incidents in the past two years, with 39% calling the impact “severe” or “extremely severe.”
The consequences of poor AI implementation have been significant: 77% of companies reported financial losses, and over half suffered reputational damage. Risks cited include privacy breaches, ethical violations, bias, regulatory non-compliance, and harmful predictions.
While “RAI leaders” reported 39% lower financial losses and 18% less severe incidents, the majority of companies still lack comprehensive safeguards. The study also found that organizations believe they are underinvesting in RAI by about 30%.
Infosys recommends that enterprises learn from high-maturity RAI adopters, combine decentralized innovation with centralized governance, embed AI guardrails into secure platforms, and establish dedicated RAI offices.
“Delivering more value from enterprise AI requires building a responsible foundation rooted in trust, risk mitigation, and ethical practices,” said Balakrishna D.R., Executive Vice President at Infosys. “As AI evolves, proactive governance will be critical.”
Jeff Kavanaugh, Head of Infosys Knowledge Institute, added that companies prioritizing robust RAI safeguards can both reduce risks and unlock new revenue opportunities in the emerging agentic AI era.
The full report is available on Infosys’s website.