Agentic AI Poses New Organizational Risks Says Harvard Review

What Happened

Harvard Business Review has highlighted that most organizations lack the preparedness to handle the risks associated with agentic AI systems. Unlike traditional automation, agentic AI can make autonomous decisions and take independent actions, often in unpredictable ways. The article points out that companies are struggling to identify, assess, and mitigate these new layers of risk. Common shortcomings include insufficient internal expertise, unclear governance frameworks, and a reliance on outdated security protocols that do not account for the dynamic nature of modern AI agents. The report emphasizes the urgency for organizations to adapt their risk management policies and invest in relevant safeguards as AI capabilities rapidly evolve.

Why It Matters

The increased deployment of agentic AI creates significant business and societal risks, ranging from operational errors to potential regulatory violations. Without robust safeguards, companies could face severe reputational, legal, and financial consequences. Agentic AI also raises broader questions about accountability and trust in automation. Read more in our AI News Hub