A new global report by Infosys and MIT Technology Review Insights reveals that 83 percent of business leaders believe psychological safety directly impacts the success of enterprise AI initiatives. The report, "Creating Psychological Safety in the AI Era," highlights how employees often hesitate to experiment, challenge assumptions, or lead projects due to fear of backlash, which undermines innovation even when the technology capabilities exist. Despite major investments in AI, workplace fear – particularly fear of failure – remains one of the biggest barriers to adoption. The report finds that human factors are holding enterprises back, with fear of failure, unclear communication, and limited leadership openness often preventing employees from fully engaging with AI initiatives. In fact, organizations may have the tools and strategies in place, but without psychological safety, adoption falters. The findings emphasize that scaling AI is as much about building trust and resilience within the workforce as it is about deploying cutting-edge systems. The report's key findings include: A culture of psychological safety has greater success with AI projects. More than four out of five (83 percent) respondents say psychological safety has a measurable impact on the success of AI initiatives, and 84 percent report direct links between psychological safety and tangible business outcomes. Fear is holding leaders back. While nearly one-quarter (22 percent) of respondents admit they have hesitated to lead or suggest an AI project because of fear of failure or potential criticism, encouragingly three-quarters (73 percent) indicated they feel safe to provide honest feedback and express opinions freely in the workplace. Achieving psychological safety is a moving target. Fewer than half (39 percent) of respondents describe their current level of psychological safety as "high," – yet 48 percent report a "moderate" degree of it. This highlights a gap where some enterprises are pursuing AI adoption on cultural foundations that are not yet fully stable. Communication and leadership behaviors are critical levers. 60 percent of respondents say clarity on how AI will – and won’t – impact jobs would improve psychological safety the most, while just over half (51 percent) highlight leadership modeling openness to questions, dissent, and failure as equally important. Creating psychological safety takes more than good intentions or HR policies. It requires explicit messaging about AI’s realistic capabilities, limits, and approved use cases. Clear communication and ongoing dialogue help companies prioritize transparency, ethics, and stakeholder engagement. Leaders who communicate clearly about AI’s impact and model openness to questions and dissent create the conditions for innovation. Without that foundation of trust, even the most advanced AI strategies will falter. The report underscores that AI transformation is not only a technological journey but also a cultural one. By prioritizing psychological safety, enterprises can create trust, resilience, and openness, which are needed to unlock the full potential of AI. The report was conducted in collaboration with MIT Technology Review Insights, the custom publishing division of MIT Technology Review, the world’s longest-running technology magazine, backed by the world’s foremost technology institution. It produced live events and research on the leading technology and business challenges of the day. Insights conducted qualitative and quantitative research and analysis in the U.S. and abroad and published a wide variety of content, including articles, reports, infographics, videos, and podcasts. Infosys, a global leader in next-generation digital services and consulting, over 320,000 of its people work to amplify human potential and create the next opportunity for people, businesses, and communities. They enable clients in 59 countries to navigate their digital transformation. With over four decades of experience in managing the systems and workings of global enterprises, they expertly steer clients as they navigate their digital transformation powered by cloud and AI. They enable them with an AI-first core, empower the business with agile digital at scale, and drive continuous improvement with always-on learning through the transfer of digital skills, expertise, and ideas from their innovation ecosystem. Infosys is deeply committed to being a well-governed, environmentally sustainable organization where diverse talent thrives in an inclusive workplace. For more information, visit www.infosys.com.
