Huntington Ingalls Industries (HII) has disclosed a new risk, in the Technology category.
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Huntington Ingalls Industries faces significant risks related to its use of artificial intelligence (AI), which includes generative AI and machine learning to enhance productivity and optimize processes. The company acknowledges that AI’s inherent uncertainties could lead to operational inefficiencies, competitive harm, or legal liabilities, especially if their AI tools prove deficient or if they fail to comply with rapidly evolving global regulations. Despite implementing an AI Governance and Enablement Program, the challenge remains in keeping pace with competitors and navigating the complex legal landscape, which could necessitate resource-intensive adjustments to operations and offerings across jurisdictions. The unpredictable nature of AI technology further complicates the company’s ability to foresee potential legal, operational, or technological risks, potentially impacting its business and financial outcomes.
The average HII stock price target is $205.00, implying 28.33% upside potential.
To learn more about Huntington Ingalls Industries’ risk factors, click here.
