A new survey by the Global Risk Advisory Council warns CEOs to slow down on artificial intelligence adoption and distinguish between transitory and tectonic transitions, as association with influential figures like Elon Musk poses a significant threat to brand reputation.
Associating with influential figures like Elon Musk and misusing artificial intelligence are among the most surefire ways for companies to damage their brands, a new survey of international public affairs leaders found. The Global Risk Advisory Council’s ‘reputation risk index’ contains an ‘unambiguous warning’ for chief executive officers, urging them to ‘slow down‘ and make a distinction between transitory and tectonic transitions.
Elon Musk is a South African-born entrepreneur, inventor, and business magnate.
He is best known for founding SpaceX, which aims to reduce space transportation costs and enable the colonization of Mars.
Musk also co-founded Tesla, Inc., an electric vehicle and clean energy company.
He has been instrumental in shaping the electric car industry and has advocated for sustainable energy solutions.
Musk's innovative ideas have disrupted traditional industries, making him one of the most influential figures in modern technology.
The Polarizing Influence of Elon Musk
Musk‘s association with the Trump administration has generated strong disapproval. A Quinnipiac University survey released in March showed 60% of voters look down on the way the businessman and his allies are dealing with workers employed by the federal government. Stock in Tesla slumped amid the backlash, and there were reports that Musk would gradually shift away from his prominent place within the Trump administration.
The Threat of Artificial Intelligence
The survey found that earning stories about creating deepfakes, misinformation, biased decision-making, or unethical applications of AI are among the most likely to gain negative online news attention. An unnamed council member noted that AI, if not understood or managed in companies, can have an incredible trickle-down effect that may not be reversible.
Artificial intelligence (AI) has undergone significant development since its inception in the mid-20th century.
The first AI program, Logical Theorist, was created in 1956 by Allen Newell and Herbert Simon.
Since then, AI has progressed through various stages, including rule-based systems, machine learning, and deep learning.
Today, AI is applied in numerous industries, including healthcare, finance, and transportation, with applications such as virtual assistants, image recognition, and natural language processing.
The Risk of Backlash on DEI Initiatives
Rolling back diversity, equity, and inclusion (DEI) initiatives is the third top risk listed by the survey. The Trump administration has aggressively moved to eliminate such measures within the government, military, and beyond, including at Harvard, where the White House recently axed more than $2bn in federal research funding after the university refused to end DEI programs.
Diversity, Equity, and Inclusion (DEI) initiatives aim to create a culture of inclusivity in workplaces and communities.
These initiatives promote diversity by hiring employees from diverse backgrounds, providing training on unconscious bias, and creating employee resource groups.
Equity is achieved through policies and practices that address systemic inequalities, such as pay equity and access to education.
Inclusion is fostered through employee engagement and feedback mechanisms, promoting a sense of belonging among all members.
According to a study by McKinsey, companies with diverse workforces are 35% more likely to outperform their less diverse peers.
Anticompetitive Practices and Defamation
Anticompetitive practices and facing allegations of defamation round out the top five reputational risks flagged by the first edition of a survey planned for quarterly publication. The data indicates that organizations are constantly facing complex communications challenges, and the committee’s members suspect that reputational threats are bound to only escalate in the short term.
A Call to Action
The Global Risk Advisory Council’s findings serve as an ‘unambiguous warning‘ for chief executive officers. Companies must take proactive steps to mitigate these risks and protect their brands from damage. By understanding the potential pitfalls of association with influential figures, managing AI policies, and addressing DEI initiatives, organizations can minimize their exposure to reputational threats.
