Bold claim: Psychological safety is the hidden driver behind successful AI in the enterprise—and 83% of business leaders say it measurably influences AI outcomes. That’s the central finding of a new global report by Infosys and MIT Technology Review Insights, which argues that implementing AI at scale isn’t just about cutting-edge tech. It requires clear communication about what AI can and cannot do, and which use cases are approved. The collaboration aims to help leaders deploy AI responsibly across organizations, leveraging Infosys Topaz, a comprehensive AI-first portfolio of services, solutions, and platforms.
The study, titled “Creating Psychological Safety in the AI Era,” sheds light on a common obstacle: employees often hesitate to experiment, challenge assumptions, or lead AI projects for fear of backlash. This hesitation can stifle innovation even when the technology itself is capable. Despite heavy AI investments, fear of failure remains a major barrier to widespread adoption.
Even with rapid AI advances, people-related factors are slowing progress. Fear of failure, unclear communication, and limited leadership openness can prevent full engagement with AI initiatives. In other words, organizations may have the right tools and strategies, but without a foundation of psychological safety, adoption stalls. The report suggests that scaling AI is as much about cultivating trust and resilience in the workforce as it is about deploying the latest systems.
Key findings include:
- A culture of psychological safety correlates with AI project success. 83% of respondents say psychological safety directly affects AI initiative success, and 84% report a clear link between psychological safety and tangible business results.
- Fear remains a barrier for leaders. While 22% admit hesitating to lead or propose an AI project due to fear of failure or criticism, 73% feel safe to share honest feedback and opinions at work.
- Psychological safety is evolving. Only 39% rate their current level as high, while 48% report a moderate level, highlighting a gap where AI adoption rests on cultural foundations that aren’t fully stable yet.
- Communication and leadership matter most. 60% say clear explanations of how AI will affect jobs would boost psychological safety, and 51% emphasize leaders who model openness to questions, dissent, and failure.
- It’s more than policy. True psychological safety requires explicit communication about AI’s capabilities, limits, and approved use cases, along with ongoing dialogue that emphasizes transparency, ethics, and stakeholder engagement.
MIT Technology Review Insights’ Laurel Ruma emphasizes that psychological safety is not a vague metric but a measurable driver of AI outcomes. When leaders communicate AI’s impact clearly and model receptiveness to questions and disagreement, they create the conditions for real innovation. Without that trust, even the best AI strategies can falter.
Infosys CTO Rafee Tarafdar notes that the most successful enterprise AI transformations occur where psychological safety is strong. When employees are empowered to experiment without fearing failure, innovation flourishes and AI yields meaningful business results and sustainable growth.
Infosys HR executive Sushanth Tharappan adds that Infosys has cultivated a culture of innovation where AI-based opportunities are constantly explored. He confirms that psychological safety accelerates adoption and helps reimagine roles, ultimately streamlining technology work. The takeaway: tech investments must be matched with cultural transformation to deliver lasting impact.
The report underscored that AI transformation is both a technological and a cultural journey. Prioritizing psychological safety builds trust, resilience, and openness necessary to unlock AI’s full potential.
About MIT Technology Review Insights
MIT Technology Review Insights is the custom publishing arm of MIT Technology Review, the world’s oldest technology publication. It produces live events and research on current tech and business challenges, combining qualitative and quantitative analyses across the U.S. and beyond through articles, reports, infographics, videos, and podcasts.
About Infosys
Infosys is a global leader in next-generation digital services and consulting. With over 320,000 people serving clients in 59 countries, Infosys helps organizations navigate digital transformation powered by cloud and AI. The company emphasizes an AI-first core, agile digital scale, and continuous learning through digital skills transfer from its innovation ecosystem. It is committed to governance, environmental sustainability, and an inclusive workplace where diverse talent thrives.
Visit www.infosys.com to learn how Infosys (NSE, BSE, NYSE: INFY) can help your enterprise navigate its next chapter.
Safe Harbor
Certain statements in this release are forward-looking under the Private Securities Litigation Reform Act of 1995 and involve risks and uncertainties that could cause actual results to differ materially. These include execution of business strategy, talent competition and retention, wage trends, reskilling investments, hybrid work implementation, economic and geopolitical factors, AI and regulatory developments, immigration changes, ESG initiatives, capital allocation, potential acquisitions, and cybersecurity concerns. For more detail on risks, refer to Infosys’ SEC filings, including the Form 20-F for the fiscal year ended March 31, 2025. Infosys does not undertake to update forward-looking statements unless required by law.
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