Why are major companies like ServiceTitan warning investors about AI and LLM risks in their IPO filings?

Major companies like ServiceTitan are warning investors about the risks associated with AI and Large Language Models (LLMs) in their IPO filings to ensure transparency and highlight potential challenges. While AI and LLMs show immense potential, they come with operational complexities, such as high implementation costs and the need for ongoing innovation to stay competitive. Ethical concerns like data privacy, bias, and regulatory compliance add further layers of risk. Additionally, vulnerabilities in AI systems can pose significant security threats, making robust safeguards essential. By disclosing these risks, companies aim to provide investors with a clear understanding of the uncertainties tied to adopting cutting-edge technologies, helping them make informed decisions about the future.