Article
Shadow AI And SEC Disclosure: What Your Public Company Needs To Know
When CB Financial Services disclosed a material cybersecurity incident stemming from unauthorized AI use, it revealed a new frontier in corporate governance: shadow AI can trigger SEC disclosure obligations without a traditional cyberattack. This analysis examines how internal AI adoption intersects with materiality determinations, internal controls, and board oversight, offering public companies a framework to identify, assess, and govern AI risks before they become reportable events.
MGO CPA LLP