Science & Technology · 5 Intermediate · July 11, 2026

Seven Risks When Companies Use AI

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Vocabulary

CFO /ˌsiːɛfˈoʊ/ noun

a chief financial officer; the person in charge of money in a company

The CFO decides how much money the company can spend on new projects.

risk /rɪsk/ noun

a chance that something bad could happen

There is a risk that the AI system could make mistakes.

protect /prəˈtɛkt/ verb

to keep something safe from harm or danger

The company must protect customer information from criminals.

budget /ˈbʌdʒɪt/ noun

a plan for how much money you will spend

The CFO made a budget that includes money for AI training.

punish /ˈpʌnɪʃ/ verb

to give someone a penalty for breaking a rule

The government will punish companies that do not follow the AI law.

adoption /əˈdɑpʃən/ noun

the act of starting to use something new

The adoption of AI changed how the company works.

Article

Companies are using artificial intelligence more and more. AI can help businesses work faster and save money. However, CFOs (the people who manage company money) need to be careful. AI brings new problems that can hurt a business.

Data Safety Problems

When companies use AI, they put lots of information into computers. This information can include secrets about business plans or customer names. Bad people might try to steal this data. CFOs must make sure the company protects all its information.

Wrong Decisions from AI

AI makes decisions based on information it learns. Sometimes this information is not correct. If AI learns from bad data, it will give bad answers. This can cause the company to lose money or make wrong choices.

Money Costs Are High

Using AI is expensive. Companies need new computers and workers who know how to use AI. The costs can grow quickly. CFOs must plan carefully to understand how much AI will really cost.

Rules and Laws

Governments are making new rules about AI. Companies must follow these rules or pay money as punishment. CFOs need to know what laws affect their business. They must make sure their company follows the rules.

Lost Jobs

AI can do some jobs that people do now. Workers may lose their jobs when companies use AI instead. This can cost money for the company and hurt workers. CFOs must think about the human cost of using AI.

Working Together

Companies need workers and AI to work together well. This is not always easy. Companies must train workers to use AI. CFOs must budget money for training and pay for workers who understand both AI and business.

Discussion Questions

What are two ways that using AI can help a company save money?
Why is it important for a CFO to think about protecting company data when using AI?
What do you think is the biggest risk when a company uses AI? Why?
How can a company help workers when AI takes over some jobs?
In your country, what rules or laws do you know about AI?

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