A new report from the Global Risk Advisory Council highlights misuse of artificial intelligence (AI) and association with Elon Musk as the most severe reputational risks facing organizations in Q1 2025. The Reputation Risk Index™, which surveyed over 100 public affairs leaders and former heads of state, reveals growing concerns over AI’s potential to harm brands through deepfakes, misinformation, and biased decision-making.
AI: The #1 Threat
AI misuse topped the list, with 20% of experts rating it a “10” in severity. The report warns that unchecked AI adoption could lead to “regulatory whiplash” and public backlash, particularly as governments struggle to establish guardrails. One expert noted, “AI, if not managed, can have an irreversible trickle-down effect on companies.”
Elon Musk’s Polarizing Influence
Nearly 30% of respondents rated association with Elon Musk—whether through partnerships, criticism, or perceived ties—as a critical risk. Musk’s alignment with former President Donald Trump and his role in the newly formed U.S. Department of Government Efficiency (DOGE) have amplified scrutiny. “Brands linked to Musk face recalibrated strategies to mitigate fallout,” the report states.
Broader Trends
The findings underscore a volatile landscape where technology and polarizing figures dominate reputational threats. With 86% of experts predicting risks will escalate, organizations are urged to prioritize transparency and proactive governance—especially in AI and public narratives.
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