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Anticipating AI Risks: Preparing Your Company for the Unexpected

Plan for the unplanned.
Emily Hill
Contributing Writer
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Artificial intelligence is reshaping industries, bringing innovation and efficiency to countless processes. But alongside these benefits, AI introduces unique risks that traditional systems never faced. Unlike conventional software, AI systems don’t just follow predetermined rules—they learn, adapt, and sometimes fail in unexpected ways. From biased decision-making to unintended safety issues, these incidents can have far-reaching consequences for businesses and their customers.

Preparing for these challenges is no longer optional. Organizations must develop a clear plan for addressing AI-related incidents before they occur.

This means understanding the unique nature of AI systems, anticipating potential harms, and creating tailored response strategies. By doing so, companies can minimize the impact of AI failures, maintain trust, and navigate the complexities of adopting these advanced technologies.

Why It Matters: AI systems are transforming industries, but they also introduce unique risks, from biased outputs to security vulnerabilities. Failing to address these risks can lead to significant reputational damage, financial loss, or even regulatory penalties. Establishing strong incident response protocols is not just about mitigating harm—it’s about building trust in AI systems, ensuring ethical use, and enabling continued innovation.

  • Define AI and Its Scope: A clear definition of AI is crucial for distinguishing it from traditional systems and determining when specialized incident response protocols apply. This includes defining what AI is not, such as rule-based systems, to avoid confusion during critical moments.
  • Identify Relevant Harms: Different sectors face distinct risks with AI. For example, financial and healthcare sectors may prioritize fairness and bias, while transportation may focus on physical safety. Tailoring policies to address these risks ensures preparedness.
  • Assemble Multidisciplinary Response Teams: Effective AI incident response requires a mix of expertise, including IT, cybersecurity, legal, and domain-specific knowledge. External consultants with AI specialization can fill gaps, especially for organizations without in-house resources.
  • Develop and Test Containment Plans: Short-term containment strategies should be pre-established to minimize harm. Plans must include methods for quickly modifying or disabling AI outputs and understanding downstream dependencies to prevent cascading failures.
  • Leverage Tools for Early Detection: Implement appeal and override systems to let users flag issues, monitor AI models for anomalies, and conduct regular stress tests such as red-teaming exercises to uncover vulnerabilities before deployment.

Go Deeper -> How to Prepare Your Company for AI Incidents – HBR

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