| Hey, it's Brody Ford in New York. Tech companies are warning that AI might not work out. But first... Three things you need to know today: • Google's greenhouse gas emissions jumped 48% since 2019
• Tesla's shipments fell in China for the fourth time this year
• Apple will get an observer seat on OpenAI's board Tech earnings calls have sounded like AI commercials for a while now. Executives have spent the last year and a half sermonizing about how their companies will successfully ride the artificial intelligence wave. But these same firms have been quietly issuing warnings on the ways that AI could wreck their businesses. Meta Platforms Inc. said its AI could be used to create misinformation during elections, leading to a backlash. Microsoft Corp. said it could face copyright claims related to AI training and output. Oracle Corp. warned its AI products may simply not work as well as the competition. At least a dozen major tech companies have issued or updated AI-related warnings in their financial filings this year. They're tucked in the "risk factors" section of reports sent to the US Securities and Exchange Commission. This is where companies describe what could go wrong in an effort to prevent shareholder suits down the line. Risks including climate change, wars in Ukraine and Gaza, and fallout from the collapse of Silicon Valley Bank have shown up in recent years. The warnings present a sober assessment of risks, a much-needed counterpoint to breathless boosterism about artificial intelligence. Google parent Alphabet Inc. said that use of its AI tools "may negatively affect human rights, privacy, employment, or other social concerns," leading to lawsuits or financial damage. In many cases, warnings contradict the official company line. Adobe Inc. has long argued that its programs like Photoshop will remain central to creative professionals. But earlier this year, it added a warning that proliferation of AI could disrupt the workforce and demand for its existing software. Risk factors don't have to be likely, but they do come true from time to time. Nvidia Corp. has warned since early 2023 that concerns over the misuse of AI could lead to restrictions on its products. That came true. After the Biden administration stepped up efforts to keep advanced computer chips out of China last year, Nvidia updated its filings to say restrictions had been put in place and may continue to expand. In May, Bloomberg reported that the US is slowing approval of chip exports to the Middle East. Palo Alto Networks Inc., Dell Technologies Inc., and Uber Technologies Inc. are among the other companies to add new AI-focused risk factor language this year. "There's a lot of herding in risk disclosures," Adam Pritchard, a professor of corporate and securities law at the University of Michigan Law School, said in an interview. If one company hasn't disclosed a risk that peers have, they can become a target for lawsuits, he said. Most of the additions can be boiled down: If all this AI stuff doesn't work out, we warned you.—Brody Ford Microsoft Corp. and G42, the United Arab Emirates artificial intelligence firm, announced plans in May to spend $1 billion on projects in Kenya, including a massive geothermal-powered data center. Now, despite input before the deal was reached, US officials are worried the agreement may imperil national security. CDK says "substantially all" car dealerships that use its software are restored after a damaging hack. The Biden administration is awarding $504 million to expand national tech hubs. Paramount is in talks to sell BET network for $1.6 billion. | 
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