NEW DELHI — Wipro Ltd. has identified the rapid adoption of artificial intelligence as a key business risk, warning that flawed algorithms, bias, regulatory uncertainty and unintended outcomes from AI systems could expose the company to legal, financial and reputational challenges.
In its FY26 annual report, the Bengaluru-based IT services company said it is increasingly using generative and autonomous AI technologies in client solutions and internal operations, but cautioned that the technology remains uncertain and continues to evolve.
“The development, adoption, and use of AI technologies remain uncertain and evolving, and we may not be able to successfully develop, deploy, or scale AI-enabled solutions or realise the anticipated benefits,” Wipro said in the report.
The company said any inability to innovate, effectively integrate AI technologies or ensure that such tools perform as expected could hurt its competitive position, operational efficiency and financial performance.
Wipro also warned that AI systems operating with limited human intervention could produce unintended outcomes or operational deficiencies. Such failures, the company said, could lead to project delays, failure to meet contractual service obligations, client disputes and potential loss of business.
The company said rising use of AI-driven automation and self-service tools by clients could also reduce demand for some traditional IT services, putting pressure on pricing, margins and its overall service mix.
Wipro said AI adoption is increasing legal and regulatory risks as clients seek stronger contractual protections tied to AI deployment. These may include warranties, indemnities, audit rights and obligations related to intellectual property ownership, data usage, cybersecurity, regulatory compliance and AI-generated outputs.
The company warned that if AI-enabled solutions harm clients, their customers or other third parties, Wipro could face regulatory scrutiny, litigation, financial liabilities, reputational damage and higher compliance costs.
In addition to AI-related risks, Wipro highlighted the growing threat of sophisticated cyberattacks. The company said the malicious use of advanced AI models to create deepfakes and AI-powered social engineering attacks has significantly expanded the cyber threat landscape.
As a result, Wipro said it and its third-party vendors face heightened risks of data breaches, ransomware incidents and other cybersecurity attacks.
The company also cited geopolitical and macroeconomic uncertainties as challenges to future growth. Wipro said changing tariffs and trade policies, geopolitical tensions and conflicts in regions where it or its clients operate could directly or indirectly affect business growth. (Source: IANS)
