Bloomberg reports that several tech giants, including Microsoft, Google, and Nvidia, have submitted risk reports on artificial intelligence to the U.S. Securities and Exchange Commission (SEC). The aim is to caution their investors against potential legal actions from shareholders in case of AI-related issues.
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Tech Giants Submit AI Risk Reports to SEC
Various Measures Strengthen AI Restrictions
Disparity Between Risks and Investments
The report indicates that dozens of tech companies have included or updated AI-related risk warnings in their financial reports, which they have submitted to the SEC. They emphasize that despite the rapid growth of AI, these companies could face regulatory scrutiny or lawsuits, leading to poor financial performance and investor losses.
Notably, companies submitting these warnings include Microsoft, Google, Nvidia, Meta, Adobe, Dell, Oracle, and Uber. Specifically, the warnings highlighted by each company are as follows:
Meta:
AI may be used to generate false information during elections, confusing users.
Microsoft:
The company may face copyright claims related to AI training and content output.
Alphabet:
AI tools may have negative impacts on human rights, privacy, employment, or other societal issues, leading to litigation or financial losses.
Adobe:
The proliferation of AI may disrupt the labor market and demand for existing software (Photoshop).
Nvidia:
Concerns that AI misuse could lead to product restrictions in various countries.
In fact, Microsoft is currently involved in a legal dispute with The New York Times, accusing the former and OpenAI of illegally using its newspaper content for profit without permission. External estimates suggest potential damages could amount to billions of dollars.
(
Media and Publishing Industry Crisis? The New York Times Sues OpenAI and Microsoft for Massive Copyright Infringement
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Meanwhile, Google is investigating whether OpenAI improperly used YouTube content for its product training, emphasizing that even the company itself must not violate its terms of service.
(
Google CEO Sundar Pichai Investigates OpenAI’s Improper Use of YouTube Content
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They submitted these risk reports to inform their investors and describe potential issues to prevent shareholder lawsuits in case of investment losses:
Companies often tend to disclose risks by following the practices of their peers. If a company fails to disclose risks that its peers have disclosed, it could become a target for shareholder litigation.
As Nvidia has mentioned, its chips have become a bargaining chip in U.S.-China relations. President Biden signed executive orders last year restricting chip exports to China.
(
U.S.-China Standoff Extends to AI Industry, OpenAI Terminates API Services to China
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Last week, Taiwan’s Financial Supervisory Commission issued the “Guidelines for Financial Institutions Using Artificial Intelligence,” providing guidance on risk management and customer privacy protection.
Despite emphasizing concerns about AI risks, the aforementioned companies are accelerating investments in the AI field to avoid falling behind their peers.
Just a few days ago, Meta posted a job opening for a Generative AI (GenAI) specialist, while Nvidia unveiled its latest supercomputing architecture, Blackwell, dedicated to large-scale AI computing applications at COMPUTEX 2024.
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