AI Disclosures to SEC Jump as Agency Warns of Misleading Claims

Allstate Corp., Starbucks Corp., and other major companies are talking more about artificial intelligence in disclosures to investors—and securities regulators are paying close attention.

Just over 40% of S&P 500 companies mentioned AI in their most recent annual report with the Securities and Exchange Commission, according to Bloomberg Law’s review of the disclosures. That continues an upward trend since 2018, when AI was mentioned only sporadically.

Companies as varied as used car dealer CarMax Inc. and CVS Health Corp. highlighted their use of AI in various business initiatives, while others focused on competitive and security risks from the ...