Most companies racing to deploy artificial intelligence are not putting enough safeguards in place to manage its risks, according to a new report about agentic AI from the Infosys Knowledge Institute, the research arm of Infosys.
The study, Responsible Enterprise AI in the Agentic Era, surveyed more than 1,500 executives. It found that 95% of senior leaders reported AI-related incidents in the past two years. That includes privacy breaches, biased outputs, and regulatory violations. Four in 10, on average, described the damage as “severe” or “extremely severe.”
Lack of safeguards with agentic AI
Despite those setbacks, only 2% of companies meet full standards for responsible AI controls. The report shows that businesses with stronger safeguards suffered significantly fewer losses, with 39% lower financial costs and 18% less severe damage from incidents compared with peers.
The research highlights a widening gap: 78% of executives view responsible AI as a driver of growth, yet on average, companies say they are underinvesting in safeguards by about 30%. More than 80% believe that upcoming regulations will encourage, not slow, future AI initiatives.
Infosys warned that the rapid adoption of emerging “agentic AI” systems — autonomous agents that act on behalf of users — could amplify risks unless governance catches up.
“Enterprises must establish a responsible foundation built on trust, risk mitigation, and transparency before they can fully realize AI’s promise,” said Balakrishna D.R., Executive Vice President at Infosys.
Jeff Kavanaugh, head of the Infosys Knowledge Institute, added that most firms acknowledge the importance of responsible AI but lag in execution.
“Those who embed safeguards will not only reduce risk but also unlock new revenue streams in the agentic AI era,” he said.
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