Robotic Automation Company Hit With AI-Related Securities Suit | The D&O Diary

As AI becomes an ever-more present component of many companies’ strategies and operations, one concern is the extent to which this technological shift could affect companies’ litigation risk exposures. One risk companies may face is that in seeking to promote their adoption of AI strategies, companies may be susceptible to allegations that they overstated their AI capabilities or the extent to which the strategies will actually improve results.

In that vein, a securities lawsuit filed last week against the robotic process automation company UiPath alleges that the company’s announced turnaround strategy, in which the company, among other things, rebranded itself as an AI-powered Business Automation Platform, misrepresented the strategy’s likely prospects and success.  This lawsuit is the latest example of cases in which companies adopting AI strategies face securities litigation over their AI-related representations. A copy of the June 20, 2024, complaint in the UiPath lawsuit can be found here.

Source: Robotic Automation Company Hit With AI-Related Securities Suit | The D&O Diary