MyLogIQ’s review of proxy statements and Form 10-Ks filed by Russell 3000 (R3000) companies between January and May 2023 (consisting of 2,382 proxies and 2,498 Form 10-Ks) revealed the following AI-related disclosure trends:
Director expertise—Just 1% of R3000 directors are identified in proxy statements as having AI expertise or experience, compared to 34% of directors associated with cybersecurity expertise/experience and 95% associated with technology expertise/experience.
Risk Factors—13% of companies discussed AI in their Form 10-K Risk Factors. Of those, the top five AI risk factors were government regulation, cost effective deployment of AI, competitors’ use of AI, accuracy and reliability of AI, and cybersecurity/IT vulnerability risks associated with the use of AI, as shown here: