Client Insight: Assessing AI-Related Risks – for Public Disclosures, Investors or the Board

“This article explores the risks associated with artificial intelligence (AI) for businesses. It highlights the widespread adoption of AI across various industries and identifies specific risks companies should consider. These include:

Intensified competition: AI advancements can empower competitors, making it crucial for companies to stay ahead of the curve. Defective AI products: Flawed AI systems can lead to product malfunctions, reputational damage, and even legal repercussions. Ethical considerations: Biases in AI algorithms can raise ethical concerns, requiring careful implementation and responsible use. Legal and regulatory hurdles: Evolving regulations around AI necessitate ongoing compliance efforts to avoid legal troubles.

The article emphasizes the importance of developing risk management plans to mitigate these AI-related risks and ensure responsible AI adoption within businesses.”