72% of S&P 500 companies revealed that AI poses a “material risk” to their 10 stocks this year

Among S&P 500 companies, 72% say AI is a top solution Physical risk In their 10-Ks model this year, the Conference Board found an increase from 58% last year and 12% in 2023. This shift reflects how the use of AI in business has matured from experimental use to widespread deployment, the organization wrote in a report. (The Conference Board report defines “AI” broadly, including not only MBAs, but also robotics, automation, machine learning, and other types of AI.)

Companies most likely to disclose AI risks are those in “frontline certified” industries, such as… finance, health careindustrial, He – sheand consumer discretionary sectors.

The Conference Board reported that Standard & Poor’s companies were most concerned about the reputational risks of artificial intelligence; 38% revealed potential threats to their reputation from AI at the age of 10. 45 companies cited “implementation and adoption” risks, such as overpromising on AI projects or AI not meeting expectations, while 42 companies cited consumer-facing AI as a risk. Other reputational risks cited by companies included privacy and data risks, hallucinations, competitive threats, and issues of bias and fairness.

One in five S&P affiliates cited AI-related cybersecurity threats as a risk in annual filings. While 40 companies simply stated that cybersecurity in general is a risk, 18 companies cited third-party or vendor risks, and 17 companies said Data breaches It was a risk.

Companies also expected Potential compliance risks From Amnesty International. Forty-one countries listed “evolving regulation and uncertainty” as a risk area, and some specifically pointed to EU law on artificial intelligence, which imposes tough penalties for non-compliance.

This was the report Originally published by Drink CFO.