The majority of Fortune 500 companies consider AI a risk, according to a report by observability platform Arize.
In its review of Fortune 500 annual reports (as of May 1st this year) the firm found a 250% increase in mentions of AI since the release of 2022 statements, with an almost 500% (473.5) rise in companies citing AI as a risk factor.
Over half of the firms (64%) have mentioned AI in their annual financial report and over one in five specifically reference generative AI.
Over two-thirds of companies mentioning generative AI do so in the context of risk, whether it is through the use of it, or external competition, or security threats to the business.
The industry most concerned is advertising, media, and entertainment, where over 90% cited the burgeoning tech as a risk factor.
Streaming platform Netflix, for instance, said it is concerned about failing to keep pace with competitors or achieve AI goals.
“If our competitors gain an advantage by using such technologies, our ability to compete effectively and our results of operations could be adversely impacted,” its report read.
Disney’s annual report expressed concerns over the regulation of AI and its potential to upend data pipelines or business lines relying on machine learning models.
“Rules governing new technological developments, such as developments in generative artificial intelligence, remain unsettled,” it read. “[These] may affect aspects of our existing business model, including revenue streams for the use of our IP and how we create our entertainment products.”
Telco giant, Motorola, joins firms such as CRM platform Salesforce in expressing concern over potential reputational damage.
“As we increasingly build AI, including generative AI, into our offerings, we may enable or offer solutions that draw controversy due to their actual or perceived impact on social and ethical issues resulting from the use of new and evolving AI in such offering,” Motorola’s report said.
“Although we work to responsibly meet our customers’ needs for products and services that use AI, including through AI governance programs and internal technology oversight committees, we may still suffer reputational or competitive damage as a result of any inconsistencies in the application of the technology or ethical concerns, both of which may generate negative publicity..”
Other firms, such as pharmaceutical firm Vertex, are most concerned about data leakage and heightened cyber security risks when it comes to the emerging technology.
“Risks relating to inappropriate disclosure of sensitive information or inaccurate information appearing in the public domain may also apply from our employees engaging with and use of new artificial intelligence tools, such as ChatGPT,” it said.
Read: Would you take a drug created with AI?
Arize’s review concludes that while most Fortune 500 firms are mentioning risk as a factor when it comes to AI, “there is a real opportunity for enterprises to stand out by highlighting their innovation and providing context on how they are using generative AI.”
