Microsoft is building out A.I., but here's what it thinks could go wrong

Microsoft pointed to new risk factors connected to markets it's going after in its latest annual report, which came out on Friday. The company has warned investors before about the risks involved in cloud services, where it has become a bigger force. Now, as Microsoft seeks to execute on growth opportunities associated with artificial intelligence and devices that connect to the internet, it's flagging potential issues that could arise in those areas. While Microsoft doesn't acknowledge the dustup over its work with U.S. Immigration and Customs Enforcement in its report for the year that ended on June 30, it does suggest there is the potential for "brand or reputational harm" that could arise from the use of certain AI technologies: Issues in the use of artificial intelligence in our offerings may result in reputational harm or liability. We are building AI into many of our offerings and we expect this element of our business to grow.