More Than Half Of Fortune 500 Companies Flag AI As A Major Risk, Marking 473.5% Surge In Warnings Amid Growing Concerns

The potential risks associated with artificial intelligence have been increasingly underscored by Fortune 500 companies in their annual reports. The number of firms highlighting AI as a risk factor has surged by 473.5% in the past year, a new report reveals.

What Happened: A study by Arize AI found that 281 of the Fortune 500 companies, representing 56.2% of the total, have cited AI as a potential risk. This marks a significant increase from the previous year when only 49 companies, or 9.8%, had flagged AI risks.

The report highlights the growing influence of generative AI across various industries, even those that have yet to fully embrace the technology. Most mentions of AI in the annual reports are a risk factor, presenting an opportunity for companies to stand out by emphasizing their innovation and providing context on their use of generative AI.

The surge in AI warnings coincides with the increased awareness and interest in AI following the release of OpenAI‘s ChatGPT in late 2022.

Industries most concerned about AI risks include media and entertainment, software and tech, telecoms, healthcare, financials, and retailers. On the other hand, automotive companies showed the least concern, with only 18.8% flagging AI risks.

"If annual reports of the Fortune 500 make one thing clear, it's that the impact of generative AI is being felt across a wide array of industries—even those not yet embracing the technology," the report said. "Given that most mentions of AI are as a risk factor, there is a real opportunity for enterprises to stand out by highlighting their innovation and providing context on how they are using generative AI."

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Why It Matters: The surge in AI risk warnings by Fortune 500 companies comes amid a broader discussion about the potential downsides of AI. In June, a Pew Research survey found that 52% of Americans were more concerned than excited about the increased use of AI, coinciding with an uptick in awareness about AI.

Moreover, U.S. regulators have flagged AI as a potential risk to the nation’s financial system, calling for increased supervision and monitoring of this rapidly progressing technology. This is the first instance of the panel addressing the potential dangers of AI.

Meanwhile, the surge in AI risk warnings also follows the release of ChatGPT by OpenAI, which has been a subject of controversy. In July, a group of whistleblowers at OpenAI filed a complaint with the Securities and Exchange Commission, alleging that the company had been obstructing its employees from reporting potential risks associated with its AI technology to regulators.

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This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote