Three news to start your week: August 19
Biggest US companies warn of growing AI risk
(Financial Times)
According to a recent survey of corporate filings, more than half of the largest companies in the US recognize artificial intelligence as a potential risk to their business. This highlights the profound impact that this emerging technology could have on industrial transformation.
56% of Fortune 500 companies identified AI as a "risk factor" in their most recent annual reports, showing a significant increase from just 9% in 2022. Furthermore, only 33 out of 108 companies that specifically discussed generative AI, a technology capable of creating humanlike text and realistic imagery, viewed it as an opportunity.
These groups acknowledged the potential benefits of generative AI, such as cost efficiencies, operational benefits, and accelerating innovation, yet more than two-thirds of them still specified generative AI as a risk.
Texas sues GM for allegedly violating drivers' privacy
(Reuters)
General Motors is facing a lawsuit from the state of Texas. The lawsuit alleges that the company secretly installed technology on over 14 million vehicles to gather information about drivers, which was then sold to insurance companies and others without drivers' consent.
Texas Attorney General Ken Paxton revealed that the lawsuit follows an investigation into whether several automakers improperly collected and sold large amounts of data without informing drivers. According to Paxton, GM's data was used to create "Driving Scores" that assessed the driving habits of over 1.8 million Texas drivers, including speeding, abrupt braking, aggressive steering, failure to use seatbelts, and late-night driving.
Insurers reportedly used this data to decide on premiums, policy cancellations, and coverage denials. The alleged technology was purportedly installed on most GM vehicles from the 2015 model year onwards.
Firms Fined With More Than $475 Million for Failing to Monitor Traders' Texts
(The Wall Street Journal)
Truist, TD Bank, and other financial firms will pay regulators over $475 million in fines. This is the latest development in a years-long sweep targeting traders using off-channel communication platforms like WhatsApp and iMessage.
The US Securities and Exchange Commission has announced charges against 26 firms for failing to monitor and preserve specific electronic communications. Additionally, the Commodity Futures and Trading Commission has imposed further penalties against three of the firms fined by the SEC for similar violations.
Regulators have emphasized that traders' unmonitored use of texting apps breaches firms' record-keeping obligations and undermines their oversight capabilities. According to the SEC, the firms involved in the regulatory action were found to have neglected oversight of messaging apps used by employees at all levels and failed to establish policies governing the use of such apps.
