AI Missteps Put Companies’ Credit Scores at Risk, Moody’s Says

Companies that fail to effectively deploy artificial intelligence technology will likely lose their competitive edge, lag peers and eventually end up with weaker credit quality, according to Moody’s Ratings.

The increasingly transformative nature of generative AI — the technology behind ChatGPT and other popular tools — means companies that lack well-defined strategies when rolling out AI applications could see their competitive position weaken and reputation damaged, operations disrupted, face higher costs and increased legal and cyber-security risks. All these could ding the different aspects of a business that the ratings company looks at when analyzing the credit quality of ...