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A global study by Infosys and MIT Technology Review Insights has found that psychological safety is emerging as one of the most influential factors in determining whether enterprise Ai initiatives succeed or stall.
The report, Creating Psychological Safety in the Ai Era, draws on responses from business leaders around the world and reveals that 83 per cent of executives see a measurable link between psychological safety and the outcomes of their Ai programs.
Despite advances in enterprise Ai platforms and increased investment, the research highlights a consistent theme: organisations are struggling to embed Ai not because of technological gaps, but because of cultural ones.
Fear And Uncertainty Stalling Innovation
Infosys and MIT’s research shows that fear of failure is still a critical factor deterring leadership engagement in Ai initiatives.
Nearly one in four leaders surveyed said they had hesitated to suggest or lead an Ai project due to fear of criticism or failure. Only 39 per cent of respondents said psychological safety at their organisation was “high,” with 48 per cent rating it as “moderate”.
Rafee Tarafdar, Chief Technology Officer at Infosys, said organisations that embed trust into their culture are more likely to succeed with Ai.
“We’ve observed that the most successful enterprise Ai transformations happen in organisations that foster psychological safety,” he said.
“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.”
Leadership Behaviour Plays A Critical Role
The report identifies leadership behaviour and communication clarity as two of the strongest levers to improve psychological safety in Ai programs.
More than half of all respondents (60 per cent) said that clearly communicating how Ai will impact jobs would help improve trust and safety. A further 51 per cent said leaders need to model openness to dissent and questions to encourage safe experimentation.
Laurel Ruma, Global Editorial Director at MIT Technology Review Insights, said clarity and trust are essential foundations for innovation.
“Psychological safety is not a soft metric. It is a measurable driver of Ai outcomes,” she said.
“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.”
Psychological Safety As Ai Enabler
Infosys Executive Vice President for HR, Sushanth Tharappan, said the company’s own experience reinforced the report’s findings.
“At Infosys, we’ve built a culture of innovation where employees are constantly looking for new opportunities to innovate with Ai,” he said.
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“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.”
Infosys said the research forms part of its broader push to support enterprise-wide Ai adoption through its Topaz platform – a suite of Ai-first services and platforms that aim to embed Ai into business functions responsibly.
Technical Capability Alone Not Enough
While many large enterprises now have Ai infrastructure and tools in place, the report suggests that these efforts can be undermined if employees don’t feel comfortable using them.
The findings reinforce the idea that technology alone will not drive outcomes unless paired with cultural transformation.
Tarafdar said Ai strategies will struggle to scale without an organisational foundation built on trust.
“Even when organisations have the tools, platforms and training in place, it’s culture that determines whether Ai succeeds,” he said.
“Creating psychological safety takes more than policies. It needs leadership, communication and space to learn through experimentation.”
Broader Implications For Enterprise Ai
The report is based on quantitative and qualitative data from business and technology leaders globally and forms part of a growing body of research linking workplace culture to the effectiveness of enterprise technology investments.
Last Updated on December 23, 2025 by Nick Ross
