Corporate America is raising alarm bells about AI risks, as a survey shows a growing number of Fortune 500 companies say the tech poses a threat to their business operations.
The study that reviewed annual reports shows that a growing number of America’s top companies now view AI as a threat to their businesses, albeit at varying degrees. In a year, the figure has ballooned by 475.3%
Annual reports show corporate America is concerned
When companies released their 2022 annual reports, there was a more optimistic outlook on the role of AI in the business space; however, a year later, there appears to have been a change in tone.
An analysis by Arize, an AI platform that analyses large files of data for trends showed that 64% of all companies that mentioned AI, and two-thirds of that figure did so in a negative context.
Major companies, especially those in the media and advertising businesses, were flagging AI as an existential threat.
In their annual report, Disney said the weak controls around AI and Intellectual Property may end up affecting their profitability.
“Rules governing new technological developments, such as developments in generative artificial intelligence, remain unsettled.”
Disney.
“[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,” added Disney in their report.
The concerns vary with each sector as some firms are more worried than others. The report shows that 86.4% of software and tech firms, 70% of telecoms, and 60% of retailers are concerned about AI risks.
On the contrary, only 18% of automotive companies and 37% of energy firms flagged AI.
Investments might go to waste
Streaming giant Netflix still worries that some of the capacity that has taken them time and investments to build may fail to keep up with AI’s advancements.
“If our competitors gain an advantage by using such technologies, our ability to compete effectively and our operations results could be adversely impacted,” the Netflix report read.
Large language models have been singled out as the most significant threat. Companies are afraid that as their employees seek efficiency by using AI platforms in their work, they may end up leaking sensitive data – Pharmaceutical giant Vertex are among those who hold that view.
“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,” Vertex said in their report.
Currently, there is no clear law governing AI in the US, with the closest being the bill in California, which proposes to hold companies accountable for any harm their AI platforms may have caused.
California Governor Gavin Newsom is expected to sign or veto the proposed law by month-end, amid pressure from Congress to discard the bill.