WTW Highlights Interconnected AI, Cyber, and Climate Risks in Emerging Risk Study

WTW's Willis Research Network Newsletter article, "AI in Focus: Are You Successfully Navigating AI or Managing Fragments?" by Lucy Stanbrough, Ben Fidlow, Ester Calavia Garsaball, and Angus Duncan, examines how organizations are approaching artificial intelligence (AI) risk. According to the article, many businesses believe they are managing AI risk simply because it appears on their risk register, but survey findings suggest that fragmented definitions and approaches may prevent effective oversight.

The article notes that WTW's "Emerging and Interconnected Risk Survey" identified 71 respondents, including AI as a top emerging risk, yet they used 36 different descriptions. Per the article, this lack of shared understanding can lead to inconsistent governance and unmanaged exposure. The survey indicated AI was the top emerging risk, with cyber risk cited as the leading driver of change, and the article said these risks are closely linked across WTW's interconnected risk wheel.

The authors explain that viewing AI through a single functional lens—such as technology or compliance—can obscure interdependencies with cyber threats, regulatory change, and economic pressures. According to the authors, treating AI as an isolated item on a risk register may leave organizations reacting to impacts rather than anticipating them. The article said WTW's analysis emphasizes the value of recognizing hidden connections across the enterprise.

In illustrating current impacts, the article highlights scenarios in which AI intersects with cyber crime, data center growth, and leadership preparedness. Per the article, WTW's cyber claims analysis report estimates the global average cost of a data breach claim to be $3.9 million, and IBM research cited indicates that security AI adoption could reduce breach costs by $1.9 million. According to the survey referenced in the article, one in six data breaches involved attackers using AI, with phishing and deepfake impersonation cited as leading methods.

The authors also describe energy-infrastructure challenges tied to AI-driven data center expansion. According to WTW, analysis from the International Energy Agency shows electricity demand from AI-optimized data centers may more than quadruple by 2030. Per the authors, this trend requires organizations to evaluate climate and energy risks alongside AI implementation, particularly as large technology firms explore nuclear power agreements amid grid constraints.

Leadership awareness is another theme. According to the article, 61 percent of respondents to WTW's Global Directors' and Officers' Survey Report 2024/2025 believed boards possess the required cyber security and data-privacy expertise, yet AI was the area where the fewest respondents believed boards had sufficient knowledge. Per the authors, boards are beginning to elevate AI oversight as conversations evolve and associated risks gain visibility.

To demonstrate interconnected crisis dynamics, the article includes a hypothetical scenario describing simultaneous events across Asia, Europe, and North America involving AI system failures, energy disruptions, and geopolitical instability. According to the article, this scenario underscores the need for unified frameworks that account for AI, cyber, climate, and geopolitical triggers rather than addressing them independently.

The authors describe a shift toward governance models emphasizing resilience, responsible oversight, and integrated planning across technology and risk domains. Per WTW, effective leaders are adopting principle-based approaches that build trust, accountability, and preparedness as AI adoption accelerates.