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Over 70% of S&P 500 Businesses Now Identify AI Risks

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BusinessHonor - 70% of S&P 500 Firms Recognize AI Risks

Business Honor
08 October, 2025

Most major businesses consider AI a major risk, struggling to manage it with proper oversight and policies.

According to a recent Conference Board analysis, over 70% of S&P 500 businesses now identify AI as a serious risk. This is a major increase from 2023's 12%, suggesting how quickly AI grew to importance in major businesses. As AI finds its way into major fields like customer service, financial modeling, logistics, and product design. According to the report, 38% of businesses identified reputational risk as their main concern. This means that if AI systems fail to handle personal data properly, businesses fear losing the trust of their customers. Another major issue is cybersecurity risk, as 20% of businesses point out that AI makes them prone to hacks, especially if using third-party apps. In addition, as governments attempt to establish laws that safeguard the public while encouraging innovation, legal issues are increasing.

Despite AI's acceptance, many businesses find it difficult to handle its risks. Just 35% of businesses have formally included AI tracking in their tasks, according to PwC's 2025 Corporate Director's Survey. In order to manage the threats created by AI, businesses need improved training and clear tracking, according to Ray Garcia of PwC. As AI continues to advance, businesses can start self-monitoring governance systems. Contributing to risk management, ethical use, and regulation, setting the way for a future in which intelligent machines and human leaders work closely to protect and expand businesses in a secure way.