M. Todd Henderson on AI Risk SEC Filings
ICLE Academic Affiliate and Board Member M. Todd Henderson was quoted in Business Insider regarding an increase in annual SEC filings that cite AI as a reputational risk:
Companies are legally required to update risk factors in their SEC filings when new, material risks emerge or existing ones change. The goal is to “scare investors” into understanding what could materially harm the company, which is an intentional feature of the system, said M. Todd Henderson, a law professor at the University of Chicago Law School.
“You’ve got to disclose known unknowns,” he told Business Insider.
By adding warnings about AI to their filings, company leaders are showing that they consider the technology’s potential impact as a serious matter, said Henderson, possibly even more so than the rise of the internet in the late 1990s.
Read the full piece here.