Why IT firms are treating artificial intelligence as a poisoned chalice

livemint.com:

Wipro and HCL Tech are likely to follow suit in their upcoming management discussions. Cognizant said, “Our use of AI technologies may present business, financial, legal and reputational risks. As with many innovations, AI presents risks and challenges that could adversely impact our business." The company added, “Failure to appropriately conform to this evolving landscape may result in legal liability, regulatory action, or brand and reputational harm." French IT giant Capgemini also spoke about potential disruptive effects.

“Generative AI will transform numerous jobs and create new ones... From a societal point of view, generative AI threatens to exacerbate social divides and raises challenges for democracy and human rights, particularly as its workings lack transparency and results may be inappropriate or biased," it said. Also read: Unease at Cognizant, Capgemini, Accenture over rise of AI risks Accenture warned about security risks and the potential impact on profitability.

“[GenAI] could reduce our ability to obtain favourable pricing… As cyberattacks become increasingly sophisticated (e.g. deepfakes and AI-generated social engineering), the risk of security incidents and cyberattacks has increased. Such incidents could lead to shutdowns, or disruptions of or damage… and unauthorised disclosure of sensitive or confidential information." Gen AI is creating new revenue streams and is now part of every IT major’s toolkit.