Snap Inc (SNAP) has disclosed a new risk, in the Technology category.
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Snap Inc.’s reliance on AI technologies, including generative AI, for consumer-facing features and business operations, exposes it to significant legal, privacy, and security risks. The evolving regulatory landscape poses challenges, as new and existing laws could lead to regulatory inquiries and actions, potentially resulting in fines, product restrictions, or reputational damage. These issues could necessitate changes in AI use or business practices, impacting Snap’s operations and financial health. Furthermore, failures in AI performance, such as biased or misleading outputs, could exacerbate these risks and harm the company’s business.
Overall, Wall Street has a Hold consensus rating on SNAP stock based on 5 Buys, 1 Sell and 23 Holds.
To learn more about Snap Inc’s risk factors, click here.
