Privacy violations top incidents related to AI, report finds

The impact of these incidents varied, with 77% reporting financial losses, such as lost revenue and increased costs.

More than half of respondents (53%) reported that the damage was reputational, while nearly half (46%) indicated it was legal, resulting in fines and settlements.

According to the report, 72% of the respondents said the damage was at least substantial, including 39% who said the damage from AI incidents was “extremely severe.”

The report, however, underscored that most AI initiatives in organisations are still in the early stages of development.

“While respondents commonly rate the damage from problematic incidents as serious, the scope of these deployments is often quite limited — and in many cases so is the actual impact,” the report read.