New Delhi, June 4: Wipro, a leading IT company in India, has highlighted the adoption of artificial intelligence (AI) as a significant business risk. The company warns that flawed algorithms, biases, regulatory uncertainties, and unforeseen consequences from AI systems could pose legal, financial, and reputational challenges.
In its annual report for the fiscal year 2026, Wipro stated that it is deploying generative AI and autonomous AI technologies in its internal operations and client solutions. However, these technologies remain uncertain and rapidly evolving.
Wipro noted, “The development, adoption, and utilization of AI technology remain uncertain and variable. We may struggle to successfully develop, deploy, or expand AI-focused solutions and achieve the anticipated benefits.”
The company cautioned that an inability to innovate or effectively integrate AI technologies could adversely affect its competitive position, operational efficiency, and financial performance.
Wipro emphasized that AI systems with limited human intervention increase the likelihood of unexpected outcomes and operational shortcomings. Such deficiencies could lead to project delays, failure to meet contractual obligations, disputes with clients, and the risk of losing business.
Additionally, the company pointed out that the rapid adoption of AI-based automation and self-service tools by clients could reduce demand for some traditional IT services, putting pressure on pricing, profit margins, and overall service mix.
According to Wipro, the adoption of AI is also increasing legal and regulatory risks. Clients may demand robust contractual safeguards related to AI deployment, including warranties, indemnities, audit rights, and ownership of intellectual property, data usage, cybersecurity, regulatory compliance, and liabilities concerning AI-generated outputs.
The company warned that if AI-based solutions harm clients, their consumers, or third parties, it could face regulatory scrutiny, litigation, financial liabilities, reputational damage, and increased compliance costs.
Alongside AI-related concerns, Wipro also mentioned the growing threat posed by advanced cyberattacks. The malicious use of advanced AI models to create deepfakes and AI-driven social engineering attacks has significantly broadened the scope of cyber threats.
As a result, both Wipro and its third-party vendors are facing increasing risks of data breaches, ransomware incidents, and other cybersecurity attacks.
Wipro identified geopolitical and macroeconomic uncertainties as significant challenges for future growth. The company stated that changing tariffs and trade policies, geopolitical tensions, and conflicts in regions where it or its clients operate could directly or indirectly impact business growth.
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