Lesson 283 of 1550
AI in Securities Disclosure: 10-K AI Risk Factor Drafting
Public companies must now disclose AI risks in their 10-K filings. SEC enforcement is increasing. Here's how to draft these sections defensibly.
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What this lesson covers
Learning path
The main moves in order
- 1The premise
- 2securities disclosure
- 310-K
- 4risk factors
Concept cluster
Terms to connect while reading
Section 1
The premise
AI risk disclosure in 10-K filings is now an SEC focus area; vague risk factors invite enforcement.
What AI does well here
- Draft AI risk factors that are specific to the company's actual AI use
- Update risk factors as AI deployments and risks evolve
- Avoid AI-washing — don't claim AI capabilities you don't have
- Include both upside (capability) and downside (risk) framing
What AI cannot do
- Substitute boilerplate AI risk language for company-specific disclosure
- Hide material AI incidents from disclosure
- Replace board-level AI risk oversight
Key terms in this lesson
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