- AI failures or misuse can quickly become public incidents, eroding trust.
- Customer-facing GenAI (e.g., chatbots) can generate offensive, inaccurate, or unfair content.
- Bad press and reputational damage can result from AI-driven unfair treatment or errors.
- Compliance failures linked to AI can lead to regulatory fines and scrutiny.
- The financial sector relies on trust—AI mistakes can severely impact a firm’s reputation.
- High-profile errors, such as biased loan denials or flawed investor reports, can be damaging.
- Regulators have flagged AI-related reputational risk as a key concern.
- Firms must recognize that AI-driven services reflect on their overall conduct.
- AI can scale errors rapidly, potentially sending flawed messages to thousands of customers.
- Reputation damage from AI mistakes is a significant operational risk.