The Digest | New Jersey Magazine
Issue link: https://magazines.vuenj.com/i/1519891
relating to privacy, bias, and job displacement. AI companies and their investors may face a backlash from consumers, regulators, and advocacy groups if the technology is perceived as harmful or unethical. Regulatory scrutiny of AI technologies is also increasing, with governments around the world introducing new laws and guidelines to govern and control the use of AI. Investors should be aware of these risks and take steps to mitigate them. e potential for AI to disrupt existing industries and business models is another key risk for investors. AI has the potential to automate tasks and processes that were previously performed by humans, leading to job displacement and industry consolidation. Investors in industries that are at risk of disruption need to carefully assess the potential impact of AI on their existing investments and deploy strategies to adapt to the evolving landscape. Failure to anticipate and respond to the disruptive potential of AI in traditional industries could result in significant losses for investors. Cybersecurity risks are also a major concern for investors in AI companies. AI Systems may be vulnerable to cyber-attacks and hacking, which can compromise data and undermine the reliability of AI applications. I cannot stop thinking of the movie I-Robot or the creepy Steven Spielberg movie, A.I. Artificial Intelligence, as I write this, but I digress. Companies that fail to implement appropriate safety measures can expose investors to financial losses and reputational damage. Investors should conduct thorough due diligence on the cybersecurity practices of the companies they invest in to make sure appropriate safeguards are in place. In addition to these risks, investing in AI carries the same financial risks associated with any investment, such as market volatility, economic downturns, and geopolitical concerns that are omnipresent in traditional portfolio management. e AI industry is still in its' infancy and growing rapidly, there will be setbacks, periods of rapid growth VUE ON | FINANCE 94 VUENJ.COM