Blogs

Weil’s report: “SEC Disclosures of Artificial Intelligence Technologies” reveals the results of its review of AI-related disclosure in Form 10-Ks and proxy statements between January 1 and October 31, 2023.

Form 10-K: More than 40% of S&P 500 companies and 30% of Russell 3000 companies included AI disclosure in their Form 10-K.

• 18% of S&P 500 companies and 12% of Russell 3000 companies discussed or mentioned AI in the Risk Factors.
• Approximately 7% of S&P 500 and Russell 3000 companies (primarily technology and financial services sector companies) included AI disclosure in the MD&A.
• Approximately 6% of S&P 500 companies and 5% of Russell 3000 companies made AI-related disclosure in the notes to the financial statements.
• Some companies included disclosure in the Business section.

Proxy: More than 30% of S&P 500 companies and 17% of Russell 3000 companies discussed AI in their proxy statements. Such disclosures were included in letters to stockholders, director qualifications and risk oversight discussions, corporate governance section, descriptions of company policies, and the CD&A.

Notably, the report includes numerous disclosure examples from companies’ Form 10-Ks and proxy statements that illustrate the foregoing approaches and provides guidance to companies on action steps to respond to evolving AI-related risks and opportunities.

Access additional resources on our Artificial Intelligence page.

                        This post first appeared in the weekly Society Alert!