Most big US companies now flag AI use in their public risk disclosures

A new report from The Conference Board and ESGAUGE finds that 72 percent of S&P 500 companies now flag AI as a material risk in their public disclosures. That’s up from just 12 percent in 2023, underscoring how rapidly AI has moved from experimental pilots to business-critical system. Reputational risk tops the list, cited by 38 percent of companies. Firms warn that failed AI projects, missteps in consumer-facing tools, or breakdowns in service could quickly erode brand trust. Cybersecurity risks follow, disclosed by 20 percent of firms. Unlike reputational or cybersecurity risks, which can manifest quickly, legal risk is framed… [Continue Reading]