Infosys Knowledge Institute has released a report titled 'Responsible Enterprise AI in the Agentic Era', which examines the state of agentic AI systems across several countries, including Australia, France, Germany, the UK, the US, and New Zealand. The report surveyed over 1,500 business executives and conducted interviews with 40 senior decision-makers.

Agentic AI systems, which are capable of making decisions and taking actions independently, are reportedly gaining traction in Australia. The report indicates that nearly one in five Australians are already using such systems. However, the widespread adoption of AI technologies has not come without challenges.

According to the report, 95% of companies have experienced AI-related incidents over the past two years. These incidents include privacy violations, bias, and harmful mistakes. Despite the prevalence of these issues, only 2% of companies have adequate Responsible AI (RAI) controls in place.

The report highlights that 86% of executives who are aware of agentic AI believe it will introduce new risks and compliance issues. Companies with robust RAI controls reportedly experience 39% lower financial losses and 18% lower severity from AI incidents.

In the Australia and New Zealand (ANZ) region, the report states that 95% of companies have encountered AI-related incidents, with 77% reporting financial losses and over half suffering reputational damage. Furthermore, 3% of companies in ANZ reported AI incident costs exceeding $2 million. Notably, none of the ANZ companies met the global benchmark for Responsible AI leadership.

The report also notes that 78% of senior leaders see RAI as aiding revenue growth, and 83% believe that future AI regulations will boost AI initiatives. Infosys recommends that companies learn from RAI leaders, blend product agility with platform governance, embed RAI guardrails, and establish a proactive RAI office.

Infosys, a global leader in next-generation digital services and consulting, employs over 320,000 people across 59 countries. The company emphasises the importance of establishing a responsible foundation for AI. "As Agentic AI Gains Traction, 86% of Enterprises Anticipate Heightened Risks, Yet Only 2% of Companies Meet Responsible AI Gold Standards," stated the Infosys Press Release.

Balakrishna D.R., EVP – Global Services Head, AI and Industry Verticals at Infosys, commented on the findings: "Drawing from our extensive experience working with clients on their AI journeys, we have seen firsthand how delivering more value from enterprise AI use cases, would require enterprises to first establish a responsible foundation built on trust, risk mitigation, data governance, and sustainability. This also means emphasizing ethical, unbiased, safe, and transparent model development. To realize the promise of this technology in the agentic AI future, leaders should strategically focus on platform and product-centric enablement, and proactive vigilance of their data estate. Companies should not discount the important role a centralized RAI office plays as enterprise AI scales, and new regulations come into force."

Jeff Kavanaugh, Head of Infosys Knowledge Institute, also addressed the challenges faced by enterprises: "Today, enterprises are navigating a complex landscape where AI's promise of growth is accompanied by significant operational and ethical risks. Our research clearly shows that while many are recognizing the importance of Responsible AI, there's a substantial gap in practical implementation. "

"Companies that prioritize robust, embedded RAI safeguards will not only mitigate risks and potentially reduce financial losses but also unlock new revenue streams and thrive as we transition into the transformative agentic AI era," he said,