Goldman Sachs, Citigroup, JPMorgan Chase and other Wall Street firms are warning investors about new risks from the increasing use of artificial intelligence, including software hallucinations, employee-morale issues, use by cybercriminals and the impact of changing laws globally. The dangers newly flagged in the bank’s annual reports include flawed or unreliable AI models, increased competition and new regulations restricting use of AI. JPMorgan, for example, said AI could cause “workforce displacement” that might affect staff morale and retention, and increase competition for hiring employees with the necessary technological skills, according to the firm’s 2024 10-K. Banks have been acknowledging AI-related risks in their annual reports for the past couple of years, but new concerns are cropping up as the financial sector increasingly embraces AI via their own software or […]
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