Authors note that rising spending

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Moody's research notes that AI is still in its early stages and is unlikely to have a material impact on companies' credit quality in the coming year. The report's on AI, model improvements, and edge computing will accelerate AI adoption, which could result in some companies suffering as models begin to compete.

In particular, the authors of the report note that ready-made tools that can effortlessly create and analyze text could disrupt the work of a number of companies, mainly in the business and consumer services sector.

Moody's believes that legal services providers are the most vulnerable. "AI tools can accurately and efficiently perform document review and other text services, which could make some law firm services redundant," the report's authors warn.

Business process outsourcing is another area that is at singapore mobile database of being disrupted by advances in AI. According to Moody’s, companies that provide outsourced business services could lose revenue. AI reduces the number of employees needed to serve customers, but Moody’s believes these companies can adapt by shifting to technology services or higher-skilled functions.

While business model disruption will be limited to a small number of sectors in 2024, Moody's expects technology risks to increase as many organizations begin to implement large-scale AI applications for the first time.