Coca-Cola, Colgate-Palmolive, Constellation Brands, and ADM are among the Fortune 500 giants discussing the risks and benefits of AI, as highlighted by data from technology platform Arize.
According to the report, 281 companies cited AI as a potential risk factor, a staggering increase of 473% from 2022, while mentions of AI in annual reports surged by 250% over the past two years.
Industries perceiving AI as high risk include media and entertainment (91.7%), software and technology (86.4%), and telecommunications (70%). In contrast, sectors like automotive (18.8%), energy (37.3%), and manufacturing (39.7%) regard it as low risk.
Does food and drink fear AI?
While only 10 consumer packaged goods companies and four manufacturing firms mentioned AI in their latest reports, most highlighted the associated risks. ADM’s latest financial report stated, “Generative AI advancements are progressing at an unprecedented pace, which brings risks that could subject the company to loss through various technical, legal, and opportunistic-related risks.” Concerns were particularly raised regarding the pace of development and the absence of regulatory frameworks, especially concerning data privacy and security.
|
Industry |
Percentage deeming AI a risk |
|
Media & Entertainment |
91.7 |
|
Software & Technology |
86.4 |
|
Telecommunications |
70 |
|
Healthcare |
65.1 |
|
Financial Services |
62.7 |
|
Retailer |
60 |
|
Consumer Packaged Goods |
59.5 |
|
Aerospace/Defence |
53.8 |
|
Construction |
45.5 |
|
Travel |
44.4 |
|
Business Services |
44.1 |
|
Manufacturing |
39.7 |
|
Energy |
37.3 |
|
Automotive |
18.8 |
Colgate-Palmolive echoed similar concerns, emphasizing the lack of regulation and questioning the ability to implement AI in an “effective and ethical” manner. They warned that outputs from generative AI models could be false, biased, or inconsistent with their values.
Coca-Cola’s AI concerns
Coca-Cola’s primary concern is the increased exposure to cybercrime. However, Constellation Brands has proactively implemented an AI governance framework to manage AI technology usage among employees and third-party suppliers. They acknowledged that despite their framework, there is a risk that employees and suppliers may not adhere to it, especially if they incorporate AI technologies without disclosing this to the company.
In conclusion, the rapid evolution of AI presents both opportunities and challenges for the food and drink industry. Companies must navigate these risks carefully to ensure they can leverage AI effectively while safeguarding their operations.
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