The strategic risks of AI include, but are not exclusive, to the following:
Overestimating the capabilities of AI
There is so much excitement about AI that it is easy to overestimate its current capabilities. Since AI systems do not understand the tasks they perform, and rely on their training data, they are far from infallible. The reliability of their outcomes can be jeopardized if input data is biased, incomplete or of poor quality.
AI-based analytics platforms can manage supplier risk by integrating a host of different information about suppliers, from their geographical and geopolitical environments through to their financial risk, sustainability and corporate social responsibility scores.