A recent analysis reveals that an increasing number of Fortune 500 companies in the United States are mentioning generative artificial intelligence (AI) in their financial reports, though not all of these mentions are positive.
According to research from Arize, since 2022, the number of such mentions has increased by 250%, with approximately 22% of companies mentioning generative AI or large language models in their reports. However, what is concerning is that nearly 70% of the companies mentioned are related to risks, including competitive position and security risks, as well as the potential for misinformation dissemination.
Image source: The image was generated by AI, provided by the image licensing service Midjourney.
In financial reports, companies are required to disclose known or potential risks, which explains why so many mentions of generative AI are not praising its benefits. In fact, as high as 56% of companies explicitly view AI as a potential risk, a 474% increase compared to 2022. By contrast, only 31% of companies mention the positive impacts of generative AI in their reports, which might cause some businesses to miss opportunities to promote AI adoption to investors.
For example, S&P Global mentioned in their 10-K filing on December 31, 2023, that the proliferation of generative AI could significantly increase access to public information, thereby affecting the demand for their products and services. Motorola's report also mentioned that as the company integrates AI into its products, it may suffer reputation damage due to social and ethical issues. Motorola emphasized that even with their AI governance projects and technical oversight committees, they could still face competitive damage or negative publicity due to inconsistent technology applications.
Nevertheless, there are some positive examples in the analysis, such as Quest Diagnostics mentioning in their financial documents that in 2023 they launched a generative AI initiative aimed at improving various areas including software engineering, customer service, and claim analysis. Quest stated that they hope to achieve innovation and business growth through generative AI, while ensuring safety and responsibility.
Key points:
🌟 Approximately 22% of Fortune 500 companies mention generative AI, but 70% discuss risks.
⚠️ More than half of the companies view AI as a potential risk, with only 31% mentioning its benefits.
🚀 Quest Diagnostics is an exception, as they are leveraging generative AI to drive innovation and growth.