Affirm Holdings, Inc. (AFRM) has disclosed a new risk, in the Technology category.
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Affirm Holdings, Inc.’s reliance on generative AI technologies poses significant risks, including potential operational and reputational damage, legal challenges, and increased costs. The use of AI in customer service and other business areas could lead to inaccurate or biased outputs, which may not align with societal or regulatory expectations. Despite implementing controls and policies to mitigate these risks, the company faces challenges in ensuring compliance with evolving AI regulations and maintaining intellectual property rights. Failure to address these issues could result in penalties, erode customer trust, and negatively impact Affirm’s competitive position and financial performance.
Overall, Wall Street has a Moderate Buy consensus rating on AFRM stock based on 13 Buys and 7 Holds.
To learn more about Affirm Holdings, Inc.’s risk factors, click here.