The rise of AI as a threat to the S&P 500 [pdf] • Hacker News Board

Re: The rise of AI as a threat to the S&P 500 [pdf]

#11

Post by nine_k » Thu, Jul 17, 2025, 2:35 PM UTC

netrap wrote: post #3

>> Risks to jobs rarely feature among reported risks, despite being a prominent public concern. If there is a risk to jobs, it wouldn't show up here since actually less jobs is "good" for business...

Lower expenses is good for business. Not having to pay employees lowers expenses.

But a business needs paying customers, preferably employed by someone else. Other businesses having to pay their employees is good for business in this regard.

Re: The rise of AI as a threat to the S&P 500 [pdf]

#12

Post by simonw » Thu, Jul 17, 2025, 2:41 PM UTC

They used LLMs to look at the risk disclosures in recent 10-K filings, and found that 3/4 of S&P 500 companies mentioned additional AI risks compared tot heir own previous 10-K - AI-driven cyber attacks, deepfakes, energy demands, regulation (AI EU act) etc.

Re: The rise of AI as a threat to the S&P 500 [pdf]

#13

Post by yellow_lead » Thu, Jul 17, 2025, 2:43 PM UTC

Adding something to the "Risks" section of your company's financial report reads more like CYA ("Cover Your Ass") than "We're afraid of AI!" behavior.

Re: The rise of AI as a threat to the S&P 500 [pdf]

#14

Post by psunavy03 » Thu, Jul 17, 2025, 2:51 PM UTC

netrap wrote: post #3

>> Risks to jobs rarely feature among reported risks, despite being a prominent public concern. If there is a risk to jobs, it wouldn't show up here since actually less jobs is "good" for business...

There's a reason Henry Ford paid his employees enough to buy one of his cars.

Re: The rise of AI as a threat to the S&P 500 [pdf]

#15

Post by Nasrudith » Thu, Jul 17, 2025, 2:57 PM UTC

SoftTalker wrote: post #6

netrap wrote: post #3

>> Risks to jobs rarely feature among reported risks, despite being a prominent public concern. If there is a risk to jobs, it wouldn't show up here since actually less jobs is "good" for business...

> less jobs is "good" for business Up to a point. Then you no longer have customers.

Pretty much everything good is good only 'up until a point'. The dose makes the poison after all.

Re: The rise of AI as a threat to the S&P 500 [pdf]

#16

Post by MarkusQ » Thu, Jul 17, 2025, 2:57 PM UTC

The only risk this report clearly shows is the existential risk AI poses to consulting firms that specialize in writing vacuous reports. Anyone who makes their living writing pompous puffballs of poop like this should be really, really worried.

Re: The rise of AI as a threat to the S&P 500 [pdf]

#17

Post by pyuser583 » Thu, Jul 17, 2025, 2:57 PM UTC

yellow_lead wrote: post #13

Adding something to the "Risks" section of your company's financial report reads more like CYA ("Cover Your Ass") than "We're afraid of AI!" behavior.

Facebook once listed "adoption of mobile devices" in the "Risks" section of their reports.

Re: The rise of AI as a threat to the S&P 500 [pdf]

#18

Post by steveklabnik » Thu, Jul 17, 2025, 2:58 PM UTC

yellow_lead wrote: post #13

Adding something to the "Risks" section of your company's financial report reads more like CYA ("Cover Your Ass") than "We're afraid of AI!" behavior.

Yes, the risks part of a 10-K is usually pretty comprehensive, and includes all kinds of things that may or may not be an issue: that's why they're risks, and not problems or showstoppers or something. Many of the 10-Ks I've read enumerate tons of things that have a very low chance of happening.

I'd be curious about the position of these segments in the 10-Ks, like, if they're suddenly all at the top, that's much more interesting than being tacked on to the end.

Re: The rise of AI as a threat to the S&P 500 [pdf]

#19

Post by antisthenes » Thu, Jul 17, 2025, 2:58 PM UTC

mansoor_ wrote: post #10

If the contents of the PDF were any more vague, it could be replaced by whitespace.

It's already about 80% whitespace.

I think it doesn't even pass the bar of an undergraduate research paper.

Re: The rise of AI as a threat to the S&P 500 [pdf]

#20

Post by echelon » Thu, Jul 17, 2025, 2:58 PM UTC

yellow_lead wrote: post #13

Adding something to the "Risks" section of your company's financial report reads more like CYA ("Cover Your Ass") than "We're afraid of AI!" behavior.

Here are some S&P 500 companies that are doomed:

- https://en.wikipedia.org/wiki/The_Interpublic_Group_of_Compa...

- https://en.wikipedia.org/wiki/Omnicom_Group

- https://en.wikipedia.org/wiki/Warner_Bros._Discovery

- https://en.wikipedia.org/wiki/Fox_Corporation

- https://en.wikipedia.org/wiki/Paramount_Global

I'm sure there are a lot more.