AI misuse tops corporate reputation threats in Global Risk Advisory Council survey

A new survey of over 150 public affairs leaders by the Global Risk Advisory Council reveals that the misuse of artificial intelligence is now the top threat to corporate reputations, surpassing risks related to child safety and geopolitical conflicts. While AI offers efficiency, it accelerates data, fraud, and legal risks. This threat is compounded by a modern media environment where AI-generated misinformation spreads instantly, forcing companies to adopt proactive reputation playbooks. Meanwhile, PwC data shows 56% of firms see zero financial returns from AI, raising concerns of an eventual investment bust.

Global Risk Advisory Council Reputation index

• ▪The Global Risk Advisory Council's October 6, 2026 Reputation Risk Index, surveying over 150 public affairs leaders, ranked artificial intelligence misuse as the top corporate reputation threat, followed by child safety risks and sensitive information infringement.
• ▪The Global Risk Advisory Council issued an advisory alongside its October 6, 2026 survey urging business leaders to take immediate action to mitigate long-term brand damage from artificial intelligence.
• ▪The Global Risk Advisory Council's Reputation Risk Index noted that corporate anxieties regarding supply chain issues and the US-Israel war on Iran had eased by October 2026 compared to July 2026.

Global Situation Room's findings

• ▪The Washington DC-based public affairs firm Global Situation Room stated that companies can mitigate artificial intelligence risks by reducing artificial intelligence content and relying on humans for customer service.
• ▪The Global Situation Room stated that the Reputation Risk Index released on October 6, 2026, surveyed former heads of state, government ministers, and senior executives from more than 20 countries.

Preparing for corporate reputation crises

• ▪A reputation playbook should include monitoring early signals across social platforms, identifying high-risk scenarios, establishing a decision framework, mapping key stakeholders, reviewing core messages, and identifying owned media channels.
• ▪Establishing robust processes and decision-making frameworks before a crisis occurs allows corporate leadership teams to spot risks early and communicate before external actors shape the narrative.

Impact of viral content

• ▪A viral video involving senior executives turned a leadership conduct issue into a global reputational crisis overnight.
• ▪A fake social media post impersonating Eli Lilly that claimed insulin would be free contributed to a brief but sharp market reaction, demonstrating how online rumors can impact corporate valuation.

PwC on AI financial returns

• ▪PwC Global Chairman Mohamed Kande stated that many companies fail to reap financial benefits from artificial intelligence because they treat it as a technology project rather than a business transformation.
• ▪A PwC artificial intelligence survey found that 56 percent of companies receive zero financial returns or cost benefits from artificial intelligence.

Ho Kwon Ping on global shifts

• ▪Banyan Group founder Ho Kwon Ping stated at the Forbes Global CEO Conference on October 7, 2026, that the world is entering its most massive paradigm shift since World War II.
• ▪Banyan Group founder Ho Kwon Ping warned that the current data center boom driven by private equity funds could eventually fizzle out and leave countries with stranded physical assets.

Debatable claims

• ▪Companies should prioritize human customer service over AI to protect their reputation
• ▪AI misuse is a more significant threat to corporate reputation than geopolitical instability
• ▪Poor business integration is the main cause of low corporate returns on AI