MSCI Inc, a leading provider of investment decision support tools, recently disclosed a new risk related to technology. As the company integrates artificial intelligence (AI) into its operations and product offerings, it faces significant business risks. One major concern is that competitors may outpace MSCI in effectively incorporating AI, thereby diminishing the company’s competitive edge.
In addition, MSCI faces the risk of deficiencies, inaccuracies, or biases in AI-generated content, which could damage the company’s reputation and lead to legal liabilities. This is particularly concerning given that laws and regulations related to AI are still evolving and vary by jurisdiction.
The lack of adequate rights to third-party data used by AI and failures in safeguarding confidential information could also result in regulatory scrutiny and have a significant impact on MSCI’s financial health and operational outcomes.
Despite these risks, MSCI Inc’s stock has a Moderate Buy consensus rating on Wall Street, with 8 Buy ratings, 1 Sell rating, and 3 Hold ratings.