When Automation Goes Too Far: The Hidden Risk in AI-Driven Businesses

When Automation Goes Too Far: The Hidden Risk in AI-Driven Businesses

Published February 14, 2026

A company lost 70% of its stock value after over-automating decisions. AI efficiency without oversight can become systemic fragility.

Automation is seductive.

It promises scale, speed, efficiency.

But one recent story shows the darker side:

Over-automation led to a catastrophic collapse — a 70% stock crash.

The lesson is simple:

AI can optimize processes…
but it can also amplify mistakes faster than humans can react.

In business, automation without governance becomes fragility.

The future isn’t “AI everywhere.”

It’s AI with boundaries, auditability, and human accountability.

Because the most dangerous failures are the silent ones.

 

 


Stefano Galloni
Stefano Galloni Verified Expert

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