EA and Take-Two have issued warnings to investors regarding the reputational and operational risks associated with their integration of artificial intelligence in game development. Their latest 10K filings highlight the potential social and ethical issues surrounding AI use. Without proper management, these risks could damage consumer confidence and lead to legal consequences. The disclosures reflect the requirement for publicly traded companies to inform investors of significant risks, alongside other factors like pandemics and internet regulations. Major game developers are increasingly employing AI technologies, which underscores the industry's evolving landscape.
If EA fails to manage these issues appropriately, it could lead to legal and reputational harm, and for consumers to lose confidence in our business and brands.
EA, Take-Two, and others are telling investors that using Generative AI in the video games industry is becoming common and there could be risks associated with that.
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