THE DOUBLE-EDGED IMPACT OF ARTIFICIAL INTELLIGENCE ON CORPORATE REPUTATION: OPPORTUNITIES AND THREATS

Abstract

This study examines the impact of artificial intelligence technologies on corporate reputation management focusing on the lens of threats and opportunities. Drawing on literature and current examples, it demonstrates that ethical and algorithmic bias, lack of transparency and accountability, manipulation through fake content and deepfakes, information disorganization (including misinformation, disinformation and malinformation), data privacy/security vulnerabilities, and automation failures pose significant risks to corporate reputation. In contrast, applications such as artificial intelligence-based monitoring and sentiment analysis tools, early warning and crisis simulation capabilities, data-driven decision support systems and stakeholder segmentation strengthen institutions' perception management and enable rapid and targeted intervention. The findings point to the dual nature of artificial intelligence, which can both strengthen and weaken reputations. Therefore, it is recommended that ethical compliance, strong data protection and model management, human-in-the-loop auditing, and transparent communication principles be integrated into corporate processes within a holistic management framework.