Microsoft, Google and others warn that AI could threaten business
More than a dozen prominent figures in the US technology industry have filed “risk factor” reports with the Securities and Exchange Commission (SEC) suggesting that artificial intelligence (AI) could threaten company finances.
Although less frequent, these risk reports outline the potential pitfalls of devoting resources and funds to the development of new technologies such as AI.
The dangers of artificial intelligence
Those filing warnings, according to a report from Bloomberg, include Adobe, Dell, Google, Meta, Microsoft, Nvidia, Oracle, Palo Alto Networks, Uber and at least a few others.
Warnings filed as risk reports are intended to indemnify a company against potential risks that may result in legal liability. These reports are filed with the SEC to ensure disclosure to investors.
For example, Microsoft issued a report indicating that its development and use of AI put it at risk of being sued for copyright infringement. Adobe said new AI products could threaten Photoshop's market viability, and Meta warned that its AI tools could be used to generate false information.
Related: SoftBank lost 99% when dotcom bubble burst, now it's all in on AI
A model for crypto?
Big tech elites may warn investors that their bets on AI may not pay off, but that hasn't slowed investments. AI stocks – especially market leaders Nvidia and Microsoft – have reached their peak and spawned the world's first three trillion dollar companies.
In the world of crypto, there were also high levels in 2024. Much of the year's ups and downs are in response to the US government's slightly weaker regulatory uncertainty spooner over the course of the year. On the positive side, for example, the world's first Bitcoin spot exchange-traded fund was approved in January.
Unfortunately, based on the general sentiment of the cryptocurrency community on social media, the move toward regulatory certainty in the US has not met industry expectations.
Ethereum founder Vitalik Buterin recently shouted at the lack of regulation and transparency of the crypto industry in a post on the decentralized social media platform Warpcast. He criticized the emergence of “useless” coins and coins with “obscure” histories, believing that the less they talk about their products, the less likely they are to be called securities.
In this sense, it seems that innovators in the crypto world are encouraged not to be transparent about the viability of their products and services or to disclose potential risks to investors and consumers.
By this logic, a system that treats cryptocurrencies and blockchain firms as the dominant technology of their time could make crypto companies, which Buterin calls “useless,” shrink.
