Wipro Flags AI as Major Risk

Wipro, an IT services major, has identified the rapid adoption of Artificial Intelligence (AI) as a key business risk in its FY26 annual report. The company warned that flawed algorithms, biases, evolving regulations, and unintended outcomes from AI systems could lead to significant legal, financial, and reputational challenges. Wipro noted that its inability to innovate or effectively integrate AI, or the failure of these technologies to perform as expected, could adversely affect its competitive position, operational efficiency, and financial results. The company also highlighted increased legal and regulatory exposure, potential project delays, disputes, and loss of business due to AI deficiencies. Furthermore, Wipro cautioned that AI automation could reduce demand for traditional IT services, impacting pricing and profit margins. The report also underscored growing cyber threats from AI-powered attacks and macroeconomic uncertainties, including geopolitical conflicts and rising wage costs in India, as material risks to its growth.