American Outdoor Brands notes AI integration risks including errors, bias, cybersecurity, IP issues and regulatory compliance.
“Artificial Intelligence (AI), presents new risks and challenges that may affect our business. We have made investments to integrate AI and machine learning technology into our operations and these AI applications may become more important in our operations over time. Our competitors or other third parties may incorporate AI into their operations and products more quickly or more successfully than us, which could impair our ability to compete effectively against our competitors and adversely affect our business and results of operations. We recognize that the integration of AI into our product development, software applications, customer service, and other business operations presents new or unknown intellectual property and cybersecurity risks and challenges. The use of these tools may introduce risks, including, but not limited to, errors or hallucinated outputs; bias; cybersecurity vulnerabilities; unauthorized disclosure of confidential information or personal data, intellectual property, or trade secrets; infringement allegations; and failures to comply with changing laws and regulations governing AI, privacy, consumer protection, and workplace practices. Rapid technological progress in the industry regarding new and emerging AI technologies, such as agentic and generative AI, may require additional investment in the development, integration, security, and maintenance, as well as the development of appropriate policies and safeguards to maintain a responsible and ethical ”