The WSJ reported that about 55 companies - including Carlyle Group, Overstock.com, Booking Holdings, Korn Ferry, and TripAdvisor - mentioned artificial intelligence (AI) in the Risk Factor section of their 2018 Form 10-Ks - more than 2x the number that did so in 2017 (compared to virtually none in 2016). About half of the companies that have identified AI as a risk reportedly are in the tech sector, followed by entertainment, media and communication, and financial services industry companies.
Wachtell, Lipton, Rosen & Katz partner & Society member David Katz commented: "If companies view artificial intelligence as a risk, they should describe how they see it impacting their business over the short, medium and long term."
The article includes suggested ways to mitigate the risk for those companies that have identified it, including expanding AI-related R&D efforts, acquiring the technology through M&A or partnerships, and learning how AI has been successfully implemented in other industries.
This post first appeared in the weekly Society Alert!