The Development of GenAI and its Impact on Enterprises: Challenges and Safety

Artificial Intelligence (GenAI) is fundamentally transforming enterprise operations by facilitating automation, enhancing decision support, and enabling new forms of value creation. Although GenAI offers considerable strategic potential, organizations encounter substantial challenges related to safety, ethics, legal compliance, and operational risk. This paper investigates two primary hypotheses: (H1) the positive impact of GenAI adoption on enterprise performance depends on the effective management of associated challenges and safety risks; (H2) enterprises implementing robust governance frameworks, ethical safeguards, and risk-mitigation strategies are more likely to achieve sustainable value from GenAI, while insufficient oversight may lead to operational, legal, and reputational harm. The study was analytical and validatory in nature. It was conducted using a research methodology consisting in reviewing the latest scientific literature and reports on the topic of GenAI and its impact on enterprises. Its primary goal was not merely to describe the GenAI adoption phenomenon but to analyze specific cause-and-effect relationships (hypotheses) between technology, management, and enterprise performance, using available scientific and empirical evidence.