Empirical studies show that, while artificial intelligence (AI) enables companies to achieve efficiency and productivity gains, it also poses significant risks, such as compliance violations, the loss of trade secrets and new cyber and safety threats. This study examines the applications and risks of AI, based on a literature review and an empirical analysis of DAX companies' annual reports.
The annual reports of stock corporations from the DAX index family (DAX, MDAX, SDAX and TecDAX) from 2022 to 2024 were examined. We examined mentions of AI in the annual reports, including the most frequently mentioned opportunities and risks, as well as the sentiment of these mentions (positive or negative).
Our research shows that listed companies tend to emphasise the opportunities or provide a formal description of how AI is used within the company. However, they report less on the potential risks and problems associated with its use. The only exceptions are ICT companies from the TecDAX and companies from the finance and insurance sectors.
This study contributes to our understanding of the perception and communication of risks surrounding AI, providing recommendations for companies and policymakers. The aim is to raise awareness of potential risks to promote the sustainable and trustworthy use of AI in Germany.
