Infosys: Report Shows Psychological Safety Key To AI Success, With 83% Of Leaders Noticing Positive Effects
A comprehensive Infosys-MIT Technology Review study demonstrates that psychological safety is crucial for AI initiative success, with 83% of business leaders reporting measurable impact. The research reveals significant organizational gaps, as only 39% describe high psychological safety levels while 22% of leaders hesitate on AI projects due to fear of criticism. The study emphasizes that successful AI transformation requires both technological investment and cultural change, with clear communication about AI's impact and leadership modeling of openness being key factors for creating AI-ready organizational cultures.

*this image is generated using AI for illustrative purposes only.
Infosys and MIT Technology Review Insights have released a comprehensive global report revealing that psychological safety plays a critical role in driving successful AI initiatives across enterprises. The study, titled "Creating Psychological Safety in the AI Era," demonstrates that 83% of business leaders believe psychological safety directly impacts the success of their AI programs, highlighting the human factors that often determine technology adoption outcomes.
Key Research Findings on AI Success Factors
The report presents compelling evidence about the relationship between workplace culture and AI implementation success:
| Finding: | Percentage | Impact |
|---|---|---|
| Leaders reporting measurable AI impact from psychological safety: | 83.00% | Direct success correlation |
| Leaders linking safety to business outcomes: | 84.00% | Tangible results |
| Leaders hesitating on AI projects due to fear: | 22.00% | Adoption barrier |
| Employees feeling safe to provide honest feedback: | 73.00% | Positive workplace culture |
Current State of Psychological Safety in Organizations
The research reveals significant gaps in organizational readiness for AI transformation. Only 39% of respondents describe their current psychological safety level as high, while 48% report moderate levels. This disparity suggests many enterprises are pursuing AI adoption on cultural foundations that may not be fully stable, potentially undermining their technology investments.
Critical Barriers to AI Adoption
Despite major investments in AI technology, workplace fear remains one of the biggest obstacles to successful implementation. The study identifies several key challenges:
- Fear of failure: Nearly one-quarter of respondents admit hesitating to lead or suggest AI projects due to potential criticism
- Unclear communication: Employees often lack clarity about AI's realistic capabilities and limitations
- Limited leadership openness: Insufficient modeling of openness to questions, dissent, and failure
Solutions for Building AI-Ready Culture
The report emphasizes that creating psychological safety requires more than good intentions or standard HR policies. Organizations need explicit strategies:
| Priority Area: | Percentage | Key Action |
|---|---|---|
| Clear job impact communication: | 60.00% | Explain how AI will and won't affect roles |
| Leadership behavior modeling: | 51.00% | Demonstrate openness to questions and failure |
| Transparent AI capabilities: | - | Communicate realistic limits and use cases |
Expert Perspectives on AI Transformation
Laurel Ruma, Global Editorial Director at MIT Technology Review Insights, emphasized that "psychological safety is not a soft metric, it is a measurable driver of AI outcomes." She noted that leaders who communicate clearly about AI's impact and model openness create essential conditions for innovation.
Rafee Tarafdar, Chief Technology Officer at Infosys, observed that successful enterprise AI transformations occur in organizations fostering psychological safety. "When employees feel empowered to experiment without fear of failure, innovation thrives," he stated, highlighting how trust and openness enable teams to unlock AI's full potential.
Sushanth Tharappan, Executive Vice President-HR at Infosys, reinforced that enterprises must pair technical investment with cultural transformation for lasting AI impact. He noted how psychological safety accelerates adoption when employees have safe spaces to experiment and reimagine their roles.
Strategic Implications for Enterprise AI
The report underscores that AI transformation encompasses both technological and cultural journeys. Organizations seeking to scale AI initiatives successfully must prioritize building trust, transparency, and safe-to-fail cultures alongside their technology deployments. This dual approach enables enterprises to create the psychological safety necessary for employees to fully engage with AI initiatives and drive meaningful business outcomes.
Historical Stock Returns for Infosys
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.35% | +0.86% | +6.03% | -2.52% | -19.13% | +37.90% |
















































