Dive Brief:
- Eighty-five percent of Fortune 500 companies now mention artificial intelligence in their annual 10-K filings with the Securities and Exchange Commission, up from 29% in 2022, reflecting the technology’s rapid ascent in the last few years, an analysis by AI software firm Metal found.
- Yet the technology remains an “operational tool” by and large and is not yet a primary revenue driver for most organizations using it, according to the report.
- “For CFOs who are able to measure and quantify [AI’s benefits], this will definitely be something that will pull them out of the pack,” Pablo Rios, a Metal software engineer and the report’s author, said in an interview. New York-based Metal provides an AI platform for private market investors.
Dive Insight:
The study aligns with survey findings released last month by Big Four accounting and consulting firm PwC.
Only 12% of surveyed CEOs said that AI had delivered both cost and revenue benefits. Overall, 33% of respondents reported gains in either cost or revenue, while 56% said they had so far seen no significant financial benefit.
Almost all of the companies touting concrete AI investment returns in 10-K filings are major infrastructure sellers in the space such as NVIDIA, Broadcom and Micron, Rios said. Most of the other organizations use vague language around AI “productivity” and “efficiency” with almost no quantified impact, he said.
Rios said he uncovered more than 20 instances of Fortune 500 companies hedging anticipated AI investment outcomes with “no-assurance” language. In one example, fintech company Fiserv said “there can be no assurance that our use of artificial intelligence will enhance our products or services or achieve any improvements in innovation or efficiency.”
“CFOs seem to be in a double bind where they’re compelled to invest in AI to stay competitive, yet they’re having to use very cautious language” when disclosing these initiatives, Rios said. “If you claim 20% cost savings and it doesn’t hold up, that could be a shareholder lawsuit.”
In 2022, nearly one in three companies that mentioned AI in their 10-K filings discussed it only as an opportunity — with no acknowledgment of risks, according to Metal’s analysis. By 2025, that share fell to just 4%. The proportion of companies citing both the risks and opportunities of the technology jumped from 58% to 78% during that time period.
Of the various AI risks mentioned in 10-Ks, cybersecurity is currently the most frequently cited one, followed by regulatory uncertainty and competitive threats, the study found.
Costco noted in its most recent annual 10-K that some of its competitors “have greater financial resources and technology capabilities,” including quicker adoption of AI.
“Our inability to respond effectively to competitive pressures, changes in the retail markets or customer expectations could result in lost market share and negatively affect our financial results,” the wholesale retailer said.
Meanwhile, financial services holding company Lincoln National reported that compliance with existing and emerging AI rules could result in increased costs. The company also warned that AI deployment challenges could lead to reputational, competitive or liability harms.
