AI Risk Observatory (arXiv:2610.02281v1) finds UK annual reports increasingly mention AI but substantive risk disclosure remains rare
The paper (arXiv:2610.02281v1) applies a two-stage LLM-based classification pipeline to 9,821 annual reports from 1,362 UK listed companies (2020–2025, partial 2026), validated against 474 human-annotated passages. It reports that AI-risk mentions rose from 2.8% (2020) to 41.2% (2025), AI adoption disclosure rose from 13.8% to 45.2%, vendor mentions cluster around a few major providers led by Microsoft, disclosure varies by sector and market segment (AIM vs Main Market), harm disclosures are near-absent (7 reports), and only 4.3% of 2025 reports contain what the authors classify as substantive AI risk disclosure.