AI is in every single place as of late—and meaning so is AI threat.
Amongst S&P 500 firms, 72% talked about AI as a material risk on their Kind 10-Ks this yr, the Convention Board discovered, up from 58% final yr and 12% in 2023. The shift is reflective of how AI use inside enterprise has matured from the experimental to the widespread, the group wrote in a report. (The Convention Board’s report defines “AI” broadly, together with not solely LLMs but in addition robotics, automation, machine studying, and different varieties of AI.)
The businesses probably to reveal AI threat have been these in “frontline adopter” industries, such because the finance, healthcare, industrial, IT, and client discretionary sectors.
S&P firms have been most involved concerning the reputational dangers of AI, the Convention Board reported; 38% of them disclosed potential reputational threats from AI on their 10-Ks. Forty-five firms talked about “implementation and adoption” dangers, reminiscent of overpromising on AI tasks or AI not assembly expectations, whereas 42 said that consumer-facing AI was a threat. Different reputational dangers firms talked about included privateness and knowledge dangers, hallucinations, aggressive threats, and points with bias and equity.
One in 5 S&P firms talked about AI-related threats to cybersecurity as a threat on annual filings. Whereas 40 firms merely said that cybersecurity on the whole was a threat, 18 referred to as out third social gathering or vendor dangers, and 17 mentioned data breaches have been a threat.
Corporations additionally foresaw potential compliance risks from AI. Forty-one listed “evolving regulation and uncertainty” as a threat space, and a few particularly referred to the EU AI Act, which has steep penalties for noncompliance.
This report was originally published by CFO Brew.
