Wipro, in its FY26 annual report, flagged AI as a major business risk, warning that flawed algorithms, bias, regulatory uncertainty and unintended outcomes could lead to legal, financial and reputational damage. It also highlighted cybersecurity threats from AI-driven attacks, shifting client demand, potential service disruption, and geopolitical and macroeconomic uncertainties affecting growth.

New Delhi: IT services major Wipro has identified the rapid adoption of artificial intelligence (AI) as a key business risk, warning that flawed algorithms, bias, regulatory uncertainties and unintended outcomes from AI systems could expose the company to legal, financial and reputational challenges.

In its FY26 annual report, the Bengaluru-based company said that while it is increasingly deploying generative and autonomous AI technologies across client solutions and internal operations, 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 cautioned that any inability to innovate or effectively integrate AI technologies, or any failure of such technologies to perform as expected, could adversely affect its competitive position, operational efficiency and financial performance.