TheCorporateCounsel.net

The FactSet team reviewed S&P 500 earnings calls from December 15 through March 14 to look for comments on AI. In those fourth-quarter earnings calls, 241 S&P 500 companies cited AI. To give context to this number, this FactSet article gives these comparator stats:

– This is the highest number over the past 10 years

– The 5-year average is 105 and 10-year average is 67

– The previous record over the past 10 years was 212

– This is the fourth straight quarter in which more than 200 S&P 500 companies cited “AI” on earnings calls

As Liz recently shared, “When it comes to AI-related opportunities, ‘anything you say can and will be held against you.’” And AI is certainly still an area of focus for the SEC. For example:

– The SEC is hosting a hybrid roundtable discussion on AI in the financial industry on March 27th

– The SEC recently announced the formation of a new Cyber and Emerging Technologies Unit to “root out those seeking to misuse innovation to harm investors and diminish confidence in new technologies”

– In January, the SEC (while still under Chair Gensler) announced what seems to be the first “AI washing” case against a public company

While we continue to cover SEC compliance and board governance issues associated with AI on this blog and in our “Artificial Intelligence” Practice Area on TheCorporateCounsel.net, we know that many of our members are not just dealing with board-level issues like these but also with more granular aspects of the AI & EmTech risk management and compliance process. On our new “AI Counsel” blog, John and Zachary are highlighting useful resources and sharing guidance on best practices for front-line risk management and compliance professionals who are dealing with the challenges of artificial intelligence, cyber, and other emerging technologies.

The blogs run Monday through Thursday of each week. You can subscribe to get free blog notifications in your inbox! The site also includes a “blog roll” featuring blogs and resource pages that they think readers will find useful. John and Zachary encourage readers to reach out with blog topics and suggestions.

– Meredith Ervine