Regulatory, quality and credit risks associated with AI technology
First written in FY2025. 1 of 2 entries say "Reframed", first in FY2026. Latest entry: FY2026.
Netyear Group moved to the "Worse" side of this theme in 2026, the same year as the typical company in this theme.
The whole theme swung hardest in 2024: 1 of 6 companies on the "Worse" side.
4 other companies' latest entry also says "Reframed".
- FY2026ReframedAnnual report
「We use AI technologies, including generative AI, to improve operational efficiency and enhance our services. However, our business activities may be restricted depending on the development of new regulations or the formulation of guidelines by governments and other authorities in various countries. In addition, if issues such as infringement of rights, leakage of confidential information, or a lack of accuracy or fairness in AI outputs arise, our business performance and financial position may be adversely affected by a loss of social credibility or claims for damages. We seek to mitigate these risks by establishing internal rules on the use of AI and providing thorough internal training, but it is difficult to eliminate the risks completely.」
AI risk has been reorganized from an explanation focused on the regulatory and technological innovation risks associated with generative AI to “AI use and governance,” including rights infringement, leakage of confidential information, accuracy and fairness, and liability for damages. Mitigation measures through internal rules and training have also been specified. - FY2025First statedAnnual report
「We use AI technologies, including generative AI, to improve operational efficiency and enhance our services. However, future introduction of new regulations by governments and other authorities, or the emergence of unforeseeable AI technologies, may constrain our business activities. In addition, growing concerns about AI becoming a black box and the accuracy and fairness of its generated results may adversely affect our creditworthiness and business performance.」
Regulation in various countries, business constraints caused by unexpected technologies, black-box characteristics, the accuracy and fairness of generated results, and impacts on creditworthiness and business performance associated with the use of AI technologies, including generative AI, were described for the first time as an independent risk.