Infosys and MIT Technology Review Insights Report Reveals the Critical Role of Psychological Safety in Driving AI Initiatives -- with 83% of Business Leaders Reporting a Measurable Impact
Rhea-AI Summary
Infosys (INFY) and MIT Technology Review Insights released a global report on Dec 16, 2025, finding that 83% of business leaders say psychological safety measurably impacts enterprise AI success.
The report highlights gaps: only 39% rate their psychological safety as high while 48% call it moderate, and leaders cite fear of failure, unclear communication and limited openness as key adoption barriers. It recommends explicit messaging on AI capabilities, limits and approved use cases and links cultural change to faster, safer AI adoption using Infosys Topaz.
Positive
- 83% of leaders say psychological safety impacts AI success
- 84% report links between psychological safety and business outcomes
- Infosys positions Topaz alongside cultural guidance for AI adoption
Negative
- Only 39% describe psychological safety as high
- 22% hesitated to lead AI projects due to fear of failure
- Cultural gaps (communication, leadership openness) threaten AI scaling
News Market Reaction – INFY
In the Dec 16 session, INFY declined 0.06%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Historical Context
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Dec 12 | Executive appointment | Positive | -0.1% | Sopra Steria named a new CEO with digital transformation background. |
| Nov 17 | AI offering launch | Positive | +0.7% | Unveiled AI-first GCC model to turn centers into AI innovation hubs. |
| Nov 06 | AI product launch | Positive | -1.5% | Announced AI agent to enhance energy sector operations and insights. |
| Nov 03 | Platform launch | Positive | -1.0% | Launched Infosys Topaz Fabric stack to accelerate enterprise AI adoption. |
| Oct 29 | Strategic partnership | Positive | -0.1% | Extended collaboration with Metro Bank and Workday to modernize finance ops. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Recent news flow is dominated by positive strategic and AI-related announcements, yet INFY has more often seen flat or negative next-day moves after such news.
Over the last few months, INFY’s news has centered on AI innovation and strategic partnerships. AI-focused launches like Topaz Fabric and sector-specific AI agents, as well as an AI-first GCC model, all aimed to deepen enterprise AI adoption. A Metro Bank–Workday collaboration highlighted digital transformation capabilities, while a CEO appointment at Sopra Steria added related industry context. Despite these seemingly constructive developments, price reactions have usually been modest, with several AI announcements followed by slight declines within 24 hours.
Key Terms
psychological safety technical
AI-generated analysis. How Rhea-AI works. Not financial advice.
New report from Infosys and MIT Technology Review Insights shows that trust, transparency and a 'safe to fail' culture are essential for scaling AI initiatives across global organizations
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. The report shows that despite major investments in AI, workplace fear – particularly fear of failure – remains one of the biggest barriers to adoption.
Despite rapid advances in AI technology, the report finds that human factors are holding enterprises back. Fear of failure, unclear communication and limited leadership openness often prevent 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 highlight 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.
Laurel Ruma, Global Editorial Director, MIT Technology Review Insights said, "Our research, in collaboration with Infosys, shows that psychological safety is not a soft metric, it is a measurable driver of AI outcomes. 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."
Rafee Tarafdar, Chief Technology Officer, Infosys said, "We've observed that the most successful enterprise AI transformations happen in organizations that foster psychological safety. When employees feel empowered to experiment without fear of failure, innovation thrives. This culture of trust and openness enables teams to unlock the full potential of AI, driving meaningful business outcomes and sustainable growth."
Sushanth Tharappan, Executive Vice President - HR, Infosys, "At Infosys, we've built a culture of innovation where employees are constantly looking for new opportunities to innovate with AI. We've seen firsthand how psychological safety accelerates adoption and when employees have safe spaces to experiment and reimagine roles, it streamlines the technological aspect. This report confirms that enterprises must pair technical investment with cultural transformation if they want AI to deliver lasting impact."
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.
About MIT Technology Review Insights
MIT Technology Review Insights is the custom publishing division of MIT Technology Review, the world's longest-running technology magazine, backed by the world's foremost technology institution—producing live events and research on the leading technology and business challenges of the day. Insights conducts qualitative and quantitative research and analysis in the
About Infosys
Infosys is a global leader in next-generation digital services and consulting. Over 320,000 of our people work to amplify human potential and create the next opportunity for people, businesses, and communities. We 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, we expertly steer clients, as they navigate their digital transformation powered by cloud and AI. We 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 our innovation ecosystem. We are deeply committed to being a well-governed, environmentally sustainable organization where diverse talent thrives in an inclusive workplace.
Visit www.infosys.com to see how Infosys (NSE, BSE, NYSE: INFY) can help your enterprise navigate your next.
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