In a striking shift, more than half of the largest companies in the United States now view artificial intelligence (AI) as a significant risk, marking a sixfold increase from just two years ago.
According to Arize AI, a platform dedicated to monitoring the disclosures of major corporations, a staggering 56% of companies in the top tier of American businesses have flagged AI as a “risk factor” in their most recent reports. This is a dramatic rise from only 9% in 2022.
Arize AI focuses on the Fortune 500 group, which comprises the 500 largest companies in the U.S. by revenue. Among the risks highlighted by these businesses in their financial reports are the heightened competition, driven by some companies adopting AI technologies faster than others.
Moreover, AI’s impact stretches beyond competition. It has the potential to affect human rights, privacy, and employment, creating operational and reputational challenges for businesses. Legal risks and cybersecurity threats associated with the use of AI are also prevalent concerns among these companies.
“AI doesn’t always function as intended. Data may be insufficient or contain illegal, biased, harmful, or offensive information. This can negatively impact a company’s profitability and reputation,” Motorola recently stated in their report.
The media and entertainment sectors are particularly anxious. Over 90% of companies in this industry, including giants like Netflix and Disney, have identified the rapid evolution of AI as a business risk this year.
Disney has cautioned that “regulatory oversight of new technologies,” such as generative AI (which can produce text, images, and video), is necessary. This technology poses a threat to their business model. Last year, Hollywood screenwriters and actors staged a months-long strike, demanding higher pay and protesting against the use of AI in the film industry.
Despite these concerns, Arize AI’s analysis also reveals that 33 Fortune 500 companies recognize the benefits AI brings. These advantages include cost savings, accelerated innovation, improved customer service, and enhanced capabilities in claims analysis.
According to Exploding Topics, a platform that tracks global trends, approximately 40% of companies worldwide are currently using AI. The technology is most actively employed in India, where about 59% of companies have integrated AI. The most common application of AI is in customer service.
