According to a survey of annual financial reports by research platform Arize AI, more than half of Fortune 500 companies cited AI as a potential risk factor to their business.
56% of the largest companies in the United States view artificial intelligence as a potential risk, a big jump from Only 10% in 2022.
By comparison, only 31% of the 108 companies that specifically mentioned generative AI in their annual reports mentioned its benefits or use outside of the risk factors section.
Since 2022, there has been a 473.5% increase in the number of Fortune 500 companies citing AI as a risk factor in their annual reports since 2022.
When looking at AI risk disclosure by industry, 91.7% of advertising, media and entertainment companies see AI as a risk to their business.
Media giant Walt Disney (NYSE:DIS) warned that “the rules governing new technological developments, such as developments in generative AI, remain fluid, and these developments could impact aspects of our current business model, including revenue streams for the use of our intellectual property and how we create our entertainment products.”
86.4% of software and technology companies view AI as a risk. Salesforce, a cloud and business software company (NYSE:CRM) stated that “creating generative AI content will require additional investment in licensing or developing proprietary datasets, machine learning models, and systems to test accuracy, bias, and other variables, which are often complex, can be costly, and may impact our profit margin.”
70% of telecom companies consider AI a risk factor, with telecom giant AT&T (New York Stock Exchange:T) warned that “generative AI models may produce incorrect outputs or take incorrect actions, publish private or confidential information, reflect biases embedded in the data on which they were trained, infringe the intellectual property rights of others, or be otherwise harmful.”
the a report The study shows that the impact of generative AI is being felt across a wide range of industries, even those that have yet to embrace the technology.
“Since most references to AI are seen as a risk factor, there is a real opportunity for companies to stand out by highlighting their innovations and providing context around how they are using generative AI,” noted Arezi AI.