Artificial Intelligence Ethical Violations and Corporate Response Strategies

As Artificial Intelligence (AI) is increasingly integrated into business operations at various levels, it offers not only new opportunities but also complex ethical challenges. These challenges often manifest as reputational risks when stakeholders perceive ethical missteps in the use of AI that can escalate into corporate crises.

Using a unique database of AI failures and related litigation, this chapter examines the emerging types of reputational issues and the corresponding crisis communications responses of companies engaging with AI, with the overarching goal of exploring the factors driving the various response strategies. This analysis contributes to the emerging field of AI ethics by explicitly linking it to crisis communication, highlighting the critical role of ethical considerations in managing reputational risk.