Item 1A. Risk Factors
ITEM 1A. RISK FACTORS
Except for the risk factor set forth below, there have been no material changes from the risk factors previously disclosed in the Company’s 2022 Annual Report on Form 10-K, filed with the SEC on February 27, 2023, and investors are encouraged to review these risk factors prior to making an investment in us.
Issues in the use of artificial intelligence (“AI”) in our HCM products and services may result in reputational harm or liability to us.
We are enhancing our products and technologies by leveraging artificial intelligence (“AI”) and we expect AI to be a growing element of our business offerings. As with many developing technologies, AI presents risks and challenges that could affect its further development, adoption, and use, and therefore our business and product offerings and their reliability. AI algorithms may be flawed. Datasets may be insufficient or of poor quality, or contain biased information. We intend that the product offerings and services integrating AI will assist our customers in data collection. If the information that AI applications assist us in producing for our customers are or are alleged to be deficient or inaccurate, we could be subjected to competitive harm, potential legal liability, and brand or reputational harm. Though our business practices are designed to mitigate many of these risks, our ability to produce data-driven insights for our customers as we leverage AI in our HCM technology may be constrained by current and future regulatory requirements, thereby restricting our ability to use data in innovative ways to support the needs of our customers.
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