An increasing number of US corporations are acknowledging artificial intelligence as a potential risk in their annual reports, new research says.
A report from Arize AI claims that 281 of the Fortune 500 companies cited AI as a risk factor in their latest filings, a staggering 473.5% increase compared to last year.
The recognition of the risks surrounding AI tools comes after many months of development and hundreds of new tools, both in the enterprise and consumer realms.
Companies are concerned about AI
What’s more, the technology is on the tip of many business leaders’ tongues: 152% more companies mentioned AI this year than last year, indicating widespread adoption and awareness.
The study concludes: “The impact of generative AI is being felt across a wide range of industries, even those that have yet to adopt the technology.”
However, most mentions highlight the risks of AI, leading Arize AI to believe that companies can differentiate themselves by demonstrating innovations attributed to the technology.
Media and entertainment companies are among the most likely to perceive AI as a threat – 91.7% agreed – as the sector continues to grapple with the disruption AI is bringing to content creation and intellectual property. For example, Netflix has warned that competitors leveraging AI could hurt its ability to compete.
Other industries, including software and technology companies (86.4%), telecommunications (70%) and healthcare (65.1%) also expressed concern about the impact of AI on their sector, with automotive, energy and manufacturing companies being less likely to view AI as a risk.
The report also mentions the role of AI in cybersecurity, where it can power attacks by processing massive amounts of leaked data and writing malicious code.
However, despite legitimate risks, rapid adoption of technology continues and the need for businesses to balance innovation with a cautious approach is becoming increasingly clear.
