New Delhi, June 3 (IANS). Country’s leading IT company Wipro has described the adoption of Artificial Intelligence (AI) as the biggest business risk and said that bad algorithms, biases, regulatory uncertainties and unintended consequences arising from AI systems can present legal, financial and reputational challenges to the company.
In its annual report for FY26, Wipro said it is deploying generative AI and autonomous AI technologies across its internal operations and client solutions. However, this technology is still uncertain and changing rapidly.
“The development, adoption and use of AI technologies remains uncertain and variable, and we may not be able to successfully develop, deploy or scale AI-centric solutions and achieve the expected benefits,” Wipro said in the report.
The company warned that its inability to innovate or effectively integrate AI technologies, or the failure of such technologies to perform as expected, could adversely affect its competitive position, operating efficiency and financial performance.
Wipro said AI systems operated with limited human intervention increase the potential for unintended consequences and operational deficiencies.
These types of deficiencies can lead to project delays, inability to fulfill contractual obligations, disputes with customers, and loss of business.
The company also noted that the rapid adoption of AI-based automation and self-service tools by customers could reduce demand for some traditional IT services, putting pressure on prices, profit margins and overall service mix.
According to the company, legal and regulatory risks are also increasing with the adoption of AI.
Wipro said customers can demand stronger contractual safeguards related to AI deployment, including warranties, indemnity, audit rights and obligations related to intellectual property ownership, data use, cybersecurity, regulatory compliance and AI-generated outputs.
The company warned that if AI-based solutions harm customers, their consumers or other third parties, it could face regulatory investigations, litigation, financial liabilities, reputational damage and increased compliance costs.
Along with AI-related concerns, Wipro also noted the growing threat posed by advanced cyber attacks.
The company said the malicious use of advanced AI models to create deepfakes and AI-powered social engineering attacks have significantly increased the scope of the cyber threat.
This exposes both Wipro and its third party vendors to increased risks of data breaches, ransomware incidents and other cyber security attacks.
The company also cited geopolitical and macroeconomic uncertainties as key challenges to future growth.
Wipro said changing tariff and trade policies, geopolitical tensions and conflicts in areas where it or its customers operate may directly or indirectly impact business growth.
–IANS
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