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While business model disruption will be limited to a small number of sectors in 2024, Moody's expects technology risks to increase as many organizations begin to implement large-scale AI applications for the first time.

The report’s authors note that as companies collect data to tailor AI applications to their needs, they will face a host of challenges, ranging from technical issues to ethical questions. “Given that AI models depend on the quality of the data used to calibrate them, poor data quality will degrade their results,” they warn.

Gender or socioeconomic discrimination can lead to significant reputational damage, the report's authors note that the negative impacts have so far been limited.

Moody's acknowledges that hackers will be able to china mobile database advances in AI to conduct targeted attacks. The company also believes that AI projects will compete with cybersecurity for funding, especially in organizations that do not allocate a separate budget for cyber defense. Organizations implementing AI may expose themselves to cyber attacks if they do not configure their IT systems correctly. Moody's notes that a lack of experience with AI will increase this risk.

The report’s authors also warn that the rapid expansion of cloud infrastructure could increase cyber risk. “Cloud platforms are highly complex and difficult to protect against all possible threats,” they write. “Even as vendors improve the security of their AI services, their rapid growth and the shortage of skilled engineers make hacking more likely.”