A survey of annual stories from the most important U.S. firms are more and more highlighting synthetic intelligence as a doable threat issue.
In keeping with a report from research firm Arize AI, the variety of Fortune 500 companies that cited AI as a threat hit 281. That represents 56.2% of the companies and a 473.5% improve from the prior 12 months, when simply 49 companies flagged AI risks.
“If annual stories of the Fortune 500 make one factor clear, it’s that the affect of generative AI is being felt throughout a big selection of industries—even these not but embracing the know-how,” the report mentioned. “Given that the majority mentions of AI are as a threat issue, there’s a actual alternative for enterprises to face out by highlighting their innovation and offering context on how they’re utilizing generative AI.”
To make sure, the soar in warnings additionally coincides with the explosion of consciousness and curiosity in AI after OpenAI’s launch of ChatGPT in late 2022. The variety of companies that made any point out of AI leapt 152% to 323.
Now that AI is totally on company America’s radar, the risks and alternatives are coming into focus, with companies disclosing the place they see potential draw back coming from.
However sure companies are extra fearful than others. Main the best way was the media and leisure trade, with 91.7% of Fortune 500 companies in that sector citing AI risks, in line with Come up. That’s as AI has rippled by the trade as performers and companies look to guard against the brand new know-how.
“New technological developments, together with the event and use of generative synthetic intelligence, are quickly evolving,” streaming chief Netflix said in its annual report. “If our opponents achieve a bonus through the use of such applied sciences, our skill to compete successfully and our outcomes of operations may very well be adversely impacted.”
Hollywood big Disney said guidelines governing new applied sciences like generative AI are “unsettled,” and ultimately may have an effect on income streams for the usage of its mental property and the way it creates leisure merchandise.
Come up mentioned 86.4% of software program and tech companies, 70% of telecoms, 65.1% of healthcare companies, 62.7% of financials, and 60% of shops additionally warned.
Against this, simply 18.8% of automotive companies flagged AI risks, together with 37.3% of power corporations and 39.7% of producers.
The warnings additionally got here from companies which might be incorporating AI into their merchandise. Motorola said “AI could not at all times function as meant and datasets could also be inadequate or comprise unlawful, biased, dangerous or offensive data, which may negatively affect our outcomes of operations, enterprise repute or clients’ acceptance of our AI choices.”
Salesforce pointed to AI and its Buyer 360 platform, which offers details about clients’ clients: “If we allow or provide options that draw controversy because of their perceived or precise affect on human rights, privateness, employment, or in different social contexts, we could expertise new or enhanced governmental or regulatory scrutiny, model or reputational hurt, aggressive hurt or authorized legal responsibility.”
AI was additionally flagged as a threat with regards to cybersecurity and information leaks. Actually, the recent Def Con security conference highlighted the significance of AI in cybersecurity.
In the meantime, a study printed within the Journal of Hospitality Market and Administration in June discovered consumers were less interested in buying an merchandise if it was labeled with the time period “AI.”
Customers have to be satisfied of AI’s advantages in a specific product, in line with Dogan Gursoy, hospitality administration professor at Washington State College’s Carson Faculty of Enterprise and one of many research’s authors.
“Many individuals query, ‘Why do I want AI in my espresso maker, or why do I want AI in my fridge or my vacuum cleaner?’” he informed Fortune earlier this month.