Competitive and Legal Risks Arising from Delays in Addressing and Utilizing Generative AI
First written in FY2025. 1 of 3 entries say "Mitigated", first in 2026-05-28. Latest entry: FY2026.
0 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「The Group is promoting business transformation centered on generative AI. While leveraging the foundations of its existing search and advertising businesses, it is working to build new user touchpoints suited to the generative AI era and create new user value. However, user behavior is changing rapidly as generative AI becomes more widespread. If the development of new user touchpoints and the establishment of new monetization models, such as advertising using generative AI and charges for AI functions, do not progress as planned, it may become difficult to achieve future revenue and profit targets.」
Generative AI risk was positioned as a business strategy risk among the Group top risks for fiscal 2026, specifying the risk of failing to meet revenue and profit targets due to delays in monetizing user touchpoints, advertising and paid AI functions. - 2026-05-28MitigatedGeneral Meetings of Shareholders
「To provide highly reliable services to users, we have established the “Basic Policy on AI Ethics” and are promoting ethical use of AI. We have also established an “Expert Panel on AI Ethics” comprising external experts and developed a framework under which specialized departments collaborate and take measures under the direction of the person responsible for AI governance.」
In response to risks such as privacy risks associated with generative AI, the Company described a response framework including the Basic Policy on AI Ethics, an expert panel and a person responsible for AI governance. - FY2025First statedAnnual report
「In the process of introducing generative AI, if the Group's technology development and utilization and its recruitment of highly skilled AI personnel are insufficient, and it misses opportunities to expand its business, there is concern that it could lose its competitive advantage. In addition, insufficient responses to data privacy, intellectual property and other issues associated with the use of generative AI could lead to declining public trust and legal risks.」
The Company disclosed as a new business strategy risk the potential loss of competitive advantage due to delays in generative AI technology development and talent acquisition, as well as reputational and legal risks arising from inadequate responses to data privacy and intellectual property issues.