Infosys Limited, in collaboration with MIT Technology Review Insights, has released a report titled “Creating Psychological Safety in the AI Era.” The report reveals that 83% of business leaders believe psychological safety directly impacts the success of enterprise AI initiatives. It highlights that trust, transparency, and a ‘safe to fail’ culture are essential for scaling AI across global organizations. The report indicates that workplace fear, particularly fear of failure, remains a significant barrier to AI adoption, hindering innovation despite technological advancements. Findings suggest that clear communication about AI's capabilities and limits, along with leadership modeling openness to questions and dissent, are critical levers for fostering psychological safety. Specifically, 60% of respondents believe clarity on AI's impact on jobs would improve psychological safety, while 51% emphasize leadership behaviors in this regard. Laurel Ruma, Global Editorial Director at MIT Technology Review Insights, stated that psychological safety is a measurable driver of AI outcomes, emphasizing the need for clear communication from leaders. Rafee Tarafdar, CTO at Infosys, added that fostering psychological safety empowers employees to experiment without fear, thus enabling innovation and unlocking AI's full potential. Sushanth Tharappan, EVP - HR at Infosys, reinforced this by noting that pairing technical investment with cultural transformation is crucial for AI to deliver lasting impact.