Tech giants like Google and Microsoft Artificial Intelligence (AI) is the part of their future which gives you many ways to enhance life, existing products and create whole new revenue streams. But as per the recent financial filings, both of the firms agreed on the same point that AI makes bad decisions and could potentially harm brand and businesses leaving negative impacts.
These disclosures spotted by Wired made in the companies’ 10-K forms. These are the Standardized type document which the firms legally require to file every year. It gives investors an overview of their whole business and finances. Although in a segment titled Rist Factor both Microsoft and Alphabet Google’s parent company brings AI for the very first time.
Alphabet’s 10-K filing last week:
“New products and services, including those that incorporate or utilize artificial intelligence and machine learning, can raise new or exacerbate existing ethical, technological, legal, and other challenges, which may negatively affect our brands and demand for our products and services and adversely affect our revenues and operating results.”
Microsoft’s 10-K, filed last August:
“AI algorithms may be flawed have negative impacts. Datasets may be insufficient or contain biased information. Inappropriate or controversial data practices by Microsoft or others could impair the acceptance of AI solutions. These deficiencies could undermine the decisions, predictions, or analysis AI applications produce, subjecting us to competitive harm, legal liability, and brand or reputational harm. Some AI scenarios present ethical issues. If we enable or offer AI solutions that are controversial because of their impact on human rights, privacy, employment, or other social issues, we may experience brand or reputational harm.”
The idea behind those disclosures is to keep investors informed but also reduce the number of future lawsuits that might accuse management of hiding potential problems. Due to this, they have to make choices very wisely covering even the most obvious ways the business could go wrong.